Question

why is the election for S corporation status attractive

Answer 1

If a corporation has S corporation status, they can avoid paying many of the income taxesat the corporate level, while maintaining many of the corporation advantages .
For a corporation to qualify as an S corporation, they must meet many requirements, including the following :
-Must be a domestic corporation
-Must not be a member of an affiliated group of corporations
-Shareholders must be individuals, estates or certain trusts
-No more than one hundred shareholders
-Must have only one class of stock-No shareholder may be a resident alien.
the S corporation is taxed much more like a partnership where the shareholders pay personal income taxes on the corporate income distributed to them. This category also allows the shareholders to write off losses the corporation may incur. An S corporation also enjoys all of the limited liability of a regular corporation.