This second edition of "How to Start Your Own S Corporation" provides small business owners with the real facts about forming an S corporation. It tells you everything you need to know on the subject, with step-by-step guidance, savvy insider tips, and a wealth of hard-to-get information on S and every other type of corporation for which your business may qualify. This second edition updates the many changes in income tax law since the original publication, including the expansion of the allowed number of stockholders, the new rule that S corporations can own subsidiary corporations, new rules for medical expense benefits, and new IRS rules for LLC classification. This edition includes: information on changes in tax law affecting S corporations, LLCs, and stockholder rules; updated IRS forms; clear explanations of the advantages and disadvantages of S corporations, LLCs, partnerships, C corporations, and other legal forms of business; straightforward expert advice on choosing the business form that's right for your goals and income level; and a detailed plan for setting up your corporation and finding affordable professional assistance.