Just to clarify for those who mentioned an S Corporation..
An S Corporation is not an entity in and of itself. An S Corp is either a regular corporation that has elected "S corporation" tax status, or an LLC which is being taxed as an S Corp.
You can't just form an S Corporation without first forming an entity, such as a Corporation or LLC.
The reason for a Corporation to file S Corp tax status is to avoid double taxation and have the profits and losses flow through to the shareholders.
LLCs for the most part "replaced" S Corporations, but there is still a benefit for an LLC to be taxed as an S Corp: S Corps are not subject to self-employment taxes. Typically if your LLC is making less than 100k/year, the filing and accounting fees associated with an S Corp are not worth it. If you are making more than 100k/year, an S Corp tax election is certainly worth looking in to.