Just to make something clear regarding types of corporations: If you decide to incorporate, you will need to look at your state law and see what types are available. Generally, you can incorporate your business as a C corp, which is what most people think of when incorporating. You need a board of directors, annual minutes, etc. Or, your can incorporate as a LLC, a limited liability corporation, most of the benefits of a C corp, but with relaxed requirements. It's run more like a sole proprietorship, but you still have the limited liability of a corporation.

Once you have chosen which form of entity to create, then you have to turn to the tax issues. A "Sub-S" corporation has nothing to do with the structure of the business--it only affects how it is taxed. The designation "Sub-S" is an IRS designation only. If you do not elect Sub-S status, your corporation will be taxed as a totally seperate entity. You get no deduction from your personal taxes. You will have to file a seperate return. If you elect Sub-S status, the corporation is taxed like a sole proprietorship. All business transactions will eventually show up on your taxes. You will have to file a schedule with the IRS with your personal taxes, but not a seperate return.

I agree with the post above regarding S.C.O.R.E. It is the Service Core of Retired Exceutives, an organization through the SBA. Can be an invaluable service.