I had said before Christmas I would investigage the pros and cons of a Sub S. The most relevant to receiving MO income is that unlike a C corp, dividends are not double taxed. Sub S's are more like LLC's taxed as partnerships than a C corp. There can be payroll tax savings in a Sub S.
However, you have to be aware of the personal holding company tax on Sub S of which the IRS does not want you to defer or hide behind the Sub S in not being taxable on investment income.
What a Sub S can do is recieve royalty income and then pay it out at a more favorable dividend rate, but you have to pay out all the royalty income, anything that is retained could be hit with a flat 15% PHC tax.
Basically that is the advantage of a Sub S, no double taxation of dividends, dividends are taxed in the hands of the owners. Sub S distributions are made strictly according to ownership %, with the exception of salaries.
Please consult your CPA to see if your situation could benefit from a Sub S. Like in life, every case, everyone is different.
Sub S is not for me due to my Canadian residency.