S Corp allows you to 'pass through' your business expenses and losses
if any, to your personal tax return. This is the way to go, for people who
have a 'regular job' and also a side business. CA charges a yearly fee of
$800 Corp tax, + this goes up if your sales reach a certain yearly level.
Check out the book "Lower your Taxes Big Time" by Sandy Botkin which deals
with the topic of using the S Corp effectively.
http://www.amazon.com/Lower-Your-Taxes-Wealth-Building-Reduction/dp/007140807X
www.legalzoom.com did a nice job for me, setting the whole thing up and paperwork