background
a.  taxes:
1.  corp’s are taxed not as a flowthrough, but twice (often)
2.  C corp:  taxed on income & on dividends (soln:  pay salaries)
3.  S corp:  flowthrough tax treatment
requirements:
a.  75 SH max
b.  natural people
c.  one class of stock
b.  franchise tax (Texas) applies to all Texas corps (S, C, LLCs, PC; not SP’s Pships)
c.  choice of forum — pick whose law you want to govern
d.  liabilities:  SH’s only liable under exceptions (pierce veil, prsnly liable, didn’t follow agency rules, breach of duty, improper dividends, improper incorporation, failure to pay franchise tax)

 background
a.  taxes:
1.  corp’s are taxed not as a flowthrough, but twice (often)
2.  C corp:  taxed on income & on dividends (soln:  pay salaries)
3.  S corp:  flowthrough tax treatment
requirements:
a.  75 SH max
b.  natural people
c.  one class of stock
b.  franchise tax (Texas) applies to all Texas corps (S, C, LLCs, PC; not SP’s Pships)
c.  choice of forum — pick whose law you want to govern
d.  liabilities:  SH’s only liable under exceptions (pierce veil, prsnly liable, didn’t follow agency rules, breach of duty, improper dividends, improper incorporation, failure to pay franchise tax)