S Corporation

S-Corporations typically have a small number of shareholders, typically employees, but can also have a small number of investors. An S-Corporation is a pass thru entity. The stock basis is adjusted every year. S corporation shareholders are employees and must take a salary. 

An S-Corporation can have only a maximum of 100 shareholders. In certain cases, family members can be treated as a single shareholder. Lineal decndents "Children, grandchildren, spouse" can be considered as a single member and therefore would not count towards the maximum number of allowed share holders.