Cons of an S corp:

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Restrictions on ownership. S corps face limitations on the number and type of shareholders. For example, an S corp is limited to 100 shareholders, who must be U.S. citizens or residents, which could hinder investment prospects for a growing startup.
Increased paperwork and formalities. Running an S corp requires adherence to strict procedural formalities. This might involve maintaining detailed corporate minutes and bylaws and holding regular board meetings, which can burden a small design studio.
Rigorous IRS oversight. S corporations are subject to strict IRS regulations to ensure they meet the criteria for this designation. This means an S corp in the restaurant industry must be diligent in its compliance to avoid penalties or loss of its S corp status.
8. Nonprofit
Nonprofits operate for charitable, educational, scientific, religious, or cultural purposes. laos rcs data They are designed to serve the public good rather than generate profit for owners or shareholders. To be recognized as a nonprofit, an entity must be established with a clear mission that benefits the community or the public.

Examples of nonprofits include charitable organizations like the American Red Cross, educational institutions like Harvard University, and cultural institutions like the Metropolitan Museum of Art. Each serves a distinct public purpose and is structured to prioritize that mission over profit.