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With a LLC ownership is broken down in percentages, with a S-Corp, you have to declare your initial stock number and divides shares based on ownership status. Even if it's not publicly traded, corporations have a stock structure. If two people own a LLC then it's 50% and 50%. If two people own a S-Corp, it's 500 shares and 500 shares (if 1,000 was your filing declaration).
The reason I believe it can attract more investors is because with a S-Corp you can offer payment terms as well as equity in the company, therefore enticing more serious investors. Say the initial investment is an equity investment and I offer 10% of the shares. I would pay back the initial investment with a modest interest rate (10%-12%) for a predetermined amount of time and once those payments are satisfied, the investor retains 10% of the shares therefore 10% of the dividends. Until I either buy them out or arrange a settlement.
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