Should I form a "S" Corporation or LLC?

LLC's flexibility and ease of operation make it very favorable to small businesses.   Even though a "S" Corporation has similar pass-through taxation benefits, it does not allow for flexible distribution of profits or losses.  "S" Corporations must maintain statutory corporate formalities.  A LLC can have multiple owners, without restrictions, and offers several different classes of ownership interest.    A "S" Corporation is restricted to 74 shareholders, with restrictions on type and classification, and can offer only one class of stock.