Potentially, little risk of taxes due to appreciation (at least in the short term). Usually copyrights have little appreciation in value due to royalty income stream, as well as, the market valuation on intellectual property, tends to diminish at some points, especially, when past maturation point. In the event, of appreciating IP assets, planning could help dilute potential appreciation, through S Corp obtaining loans to be used to buy capital intensive assets, which would generate paper deductions. A common example is real estate generating depreciation deductions. Another example, S Corp buying equipment to help maintain or operate that intellectual property, such as, printing presses, if you have a very high demand paperback book. Yet another example, is have the S Corp exchange a long term loan payment to the original creator/owner of the intellectual property, in exchange for depreciating assets, used for business purposes. Expensing costs for generating royalties. The creation and stewardship of intellectual property, is certainly costly, thus, it may make sense to elect S Corp tax treatment, in order to be able to expense those costs. More importantly, it can help, the owners/creators of intellectual property avoid any losses (very possible, especially at early years) being reclassified by the IRS as hobby losses. Taking advantage by shifting taxes in another year. Since, intellectual property exist, in basically, paper (ie. not tangible, not real estate), then it reasons, that it could be moved around a lot in terms of jurisdiction, as well as, timing of its royalty penalties. Taking advantage by shifting taxes in another jurisdiction. Technically, S Corps can not be overseas entities, due to their onerous ownership restrictions, but could benefit from a Delaware Corporation electing S Corp tax treatment.