If you are self-employed, an independent contractor, or operating a sole proprietorship you may be interested in learning more about a well-known tax saving strategy—forming a corporation or LLC and electing to be taxed under Subchapter S of the Internal Revenue Code (“IRC”). This is commonly referred to as forming an S-Corp. Although the tax savings of operating an S-Corp are very real (under the right circumstances), it does come with additional compliance costs (filing fees, other taxes, returns, etc.). As a tax attorney that has represented several hundred individuals and small businesses, I felt it would be helpful to provide an honest and detailed breakdown of the requirements and identify some of the common mistakes people make.