For your corporation, I recommend a "C" corporation. It is best if you and another person is going to own it.
Pros & Cons of Regular "C" Corporations
Owner enjoys limited liability for business debts
Owner can "split" corporate profit, paying overall lower tax rate
Fringe benefits are deductible as business expenses
First, it's the best way to shield you from financial and legal liability.
Second, you can "split" corporate profits, paying overall lower tax rate.
Example: you made 15K in your loan business and 15K from Investments, inc. That's 30K. That puts you in the 28% income tax bracket - instead of the 15% bracket.
Here is what you do to split profits and income: you leave 6K in your corporation and so you drop down to 24K and 15% tax bracket. As opposed to personal income taxes, a "C" corporation - your corporation - pays only 15% for net profits that amount to under $75,000 ------ that's how you split corporate profits and save on overall taxes.
Third, with a "C" corporation you receive tax deductible fringe benefits because you are an employee of the the corporation - you cannot do this with an "S" corporation because you are not an employee (you are self-employed with an "S" corp.)
Tax deductible Fringe benefits
Employer-paid medical insurance & expenses. Employee compensation, in the form of employer payments for health insurance premiums and other medical expenses, is deducted as a business expense by employers, but isn't included in employees' gross income.
Other employer-provided insurance benefits. Many employers cover part or all the cost of premiums or payments for: (a) employees' life insurance benefits; (b) accident and disability benefits; (c) death benefits; and (d) supplementary unemployment benefits. The amounts are deductible by the employers and are excluded as well from employees' gross incomes for tax purposes.
Exclusion of employee parking expenses and employer-provided transit passes. Employee parking expenses paid for by employers are excluded from the employees' income, up to $155 a month, indexed for inflation. (Parking at facilities owned by the employer isn't counted as a tax break.)
Other fringe benefits. Several other employee benefits are not counted in employees' income, although the employers' costs for these benefits are deductible business expenses. Such exclusions include, among other things, child care, meals and lodging, ministers' housing allowances and the rental value of parsonages.
You want to go further? Form another corporation, transfer your cars to it, and then lease them to your Inc.
Your "leasing corporation" makes some money, you drive for free and you deduct all depreciation and expenses. NICE LIFE!
If you want to know more about corporations, read the article below.