Another legal form your business can take is an S Corporation.
With an S Corp, the corporate income, losses, deductions, and credits are passed through to the shareholders for federal tax purposes. The S Corp uses Schedule K-1 to report each shareholder’s share of income, deductions, credits, etc. Each shareholder of an S Corp should receive a Schedule K-1 as well when the S Corp tax return is filed.
You may need to report this info on your own return on page 2 of Schedule E.