to elaborate further on what Ibraheem stated, the biggest difference between s-corps and c-corps is that unlike c corps, s corps income is passed through so taxes are only applied directly to the owners, rather than c corps taxation both on the company level and on the owners personal taxes. Ibraheem’s mention of a s corps’ ‘inability to attract investments’ can be specified further as s corps only allows certain types of entities as owners.

For instance, “Trusts with individuals as beneficiaries are permitted to own shares in an S corp. Business trusts [are not]”. The IRS also disallows any type of corporation, s corp or otherwise from owning shares in a s corp. Partnerships and non-resident aliens are also prohibited from owning shares in a s corporation. so non-citizens can own shares in a s corp, however the must be legal residents of the US.

http://smallbusiness.chron.com/can-s-corp-shareholder-4184.html
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwidp-KP_fHWAhVExCYKHTCCDJgQFggqMAE&url=https%3A%2F%2Fjux.law%2Fcan-a-foreigner-non-citizen-resident-alien-own-an-s-corporation%2F&usg=AOvVaw0vkWNSlQRFFZLbjYFXvkfN