The S-Corporation is a business structure that’s well liked by entrepreneurs. It allows for a flow-through entity, corporate protection, and (generally) favorable taxation. Of course, there are exceptions–in tax, there are always exceptions.
The Tax Foundation has this wonderful map showing marginal tax rates by states for S-Corporations:
California is also #1 for sole proprietors. Nevada, where I reside, is #42 for both…and that’s a good thing.