@Carl wrote:
Why do you have an S-Corp if there are no assets to protect?
Personally owned assets, @Carl. The S corporation is treated as a separate entity completely apart from the shareholders and officers.
Shareholders are not responsible for the debts and liabilities of the corporation so creditors cannot pursue assets owned by the shareholders to satisfy debts of the corporation (unless there is some sort of personal guarantee).
There are other reasons, such as enhanced credibility versus doing business as a sole proprietor and the opportunity to take some of the net profit in distributions rather than W-2 income which is subject to FICA, etc.
