Hey, service-based business owners! 📈 Disadvantages of Electing to Become an S Corporation: 1️⃣ Formation and Ongoing Expenses: Operating as an S Corporation requires initial incorporation by filing articles of incorporation with the state. This involves expenses such as obtaining a registered agent and paying necessary fees, including ongoing fees like reporting and franchise tax fees. 2️⃣ State-imposed Ongoing Fees: Many states impose ongoing fees, including annual reports and franchise tax f