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S and C corps provide equivalent asset protection. The S election is solely a tax election and does not impact asset protection.
An S corporation is a pass through entity. This means corporate profits flow directly onto the owner's personal return and are not taxed twice. In this respect S corps are similar to LLCs.
The downside of an S Corporation is every stockholder must be a US resident and there cannot be more than 75 shareholders.
Corporations have two significant disadvantages when compared to LLCs. The first is reduced asset protection from personal creditors. Due to quirks in the law, shares of a company are easier to seize than membership interests in an LLC. If you MUST have a corporation, then considering holding your shares in an LLC for additional protection.
The second disadvantage is their increased complexity. They require a board of directors, levels of defined management and allow complex share classes (with equally complex rules surrounding them). Corporations also pay higher taxes than other business entities. These properties mean corporations will be a good fit in only select cases. Small businesses will often find a Colorado LLC to be more favorable.
Corporate structuring lowers taxes and provides greater asset protection. Corporations place a firewall between corporate creditors and owners. The company may have valuable assets you would rather not forsake, however. Forming multiple entities can separate corporate assets from liabilities, while shifting income to states without taxes.
Qualifying for 501(c)(3) status affords wide ranging benefits. Contributions to, and profits made by, your entity are tax free. There are also additional grants, funds, and governmental programs exclusively available to non-profits. Other benefits include lower rates for various services and products.