S corp

Business structure with a special tax status and certain tax advantages.


What is an S corp?

An S corp is a unique business structure that combines the simplicity of a sole proprietorship or partnership with the liability protection of a corporation. It allows businesses to use a “pass-through” tax structure, which means they bypass federal corporate income taxes.

Advantages of an S corp

  • Tax perks: The standout feature of an S corp is its tax advantage. Instead of paying corporate taxes, profits and losses pass through to the shareholders’ tax returns. This can lead to potential tax savings.
  • Limited liability: An S corp protects the owner’s personal assets similar to an LLC if the business runs into legal trouble.
  • Lower taxes. S corp status can help business owners save money on their personal income taxes. S corp owners often reduce their self-employment tax obligations by categorizing money received from the business as salary.

Disadvantages of an S corp

The downside of setting up and maintaining an S corp is that it takes time and money.

  • Paperwork: S corps have administrative requirements like regular meetings and record-keeping to maintain their status.
  • Ownership restrictions: There are some rules around who can own an S corp. Generally, individuals, estates, certain trusts and tax-exempt organizations can own shares.
  • Individual responsibility: Shareholders are responsible for reporting financial data to the IRS via their returns. Although individual tax rates may be lower than corporate rates, shareholders can be held accountable if the information is not reported correctly.

NEXT offers customized business insurance aligned to your needs

NEXT gives you 24/7 online access to your plan and policies to help you manage your coverage whenever it suits you best.

To get your tailored instant quote, simply answer a few questions online to customize your options. After that, you’ll be able to access your certificate of insurance and share it via the NEXT app.

Start a free instant quote with NEXT.

banner get business insurance in 10

There’s a lot to love about NEXT

Business insurance in less than 10 minutes

Get insurance in less than 10 minutes and you can save up to 25% in discounts*

Tailored business insurance

Unique, flexible coverage with easy monthly payments

Get business insurance online

Do it all 100% online or talk to a licensed U.S.-based advisor

Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

© 2023 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.