I once had clients who started a small construction business.  The wife kept her job with substantial W-2 income and the husband made $50,000 the first year, all of which was used to buy equipment.  They went to a community-college class on business and tax planning, taught by a CPA.  He told everyone in the class to incorporate and elect S status.  They did it themselves (this was before they met me).  The $50K profit, none of it distributed, ended up being taxed at a rate of 35% or so, because of the wife's income.  Had they elected C status, it would have been taxed at 15%.  So they paid $10,000 more tax, except they didn't, because they had no cash.  One thing led to another -- bankruptcy and divorce -- when the construction industry cooled.  They still owed me money, which they elected not to reaffirm.  But one of their kids is still a good client.  

When people denigrate lawyers, it just reminds me of all the CPA stories I could tell.