Someone will correct me if I’m wrong but I’ll try. A Sub S Corporation provides the protections against law suits, as a regular C Corporation. However, the income from a Sub S passes through to the owner as regular income and taxed as personal income. If the person is a C Corporation, he or she would have to pay both corporate taxes and personal taxes.
I thought that and went to a lawyer to create an LLC. The lawyer I went to is a member of my church, a great guy and conservative. However, he informed me that no incorporation would would protect me from a lawsuit if I personally screwed something up. An LLC, S or C corp might protect me if an employee of mine screwed something up and I had done due dilligence to prevent it.
Other than that, some other predatory lawyer can always sue you and hope for the best. Another reason it’s hard to start and run a business!
I have no employees, so I did not incorporate. He didn’t charge me.