An Internal Revenue Service rule that allows businesses with 35 or fewer shareholders to enjoy the benefits of incorporation but be taxed as if it were a partnership.
An S-corporation is a corporation which makes an election to be taxed like a partnership (i.e., pass-through taxation) for federal income tax purposes. An S-corporation is subject to limitations not applicable to regular corporations, including a limit on the number of shareholders and the classes of stock.
a corporation that elects to be taxed as a "pass-through" entity
a corporation that has made an election
a corporation with a limited number of shareholders that is afforded favorable tax treatment under the federal Internal Revenue Code
a hybrid between partnerships and C-Corporations
an election made to the IRS to be treated as a Small Business corporation and receive partnership-like taxation
a pass-through entity meaning the profits and losses pass through unto the business owners, avoiding double taxation of a corporation and individual income
a regular corporation
a tax designation only
a type of corporation that is specially treated under the tax laws
This is a corporation with special tax status that avoids double taxation. Small business owners and entrepreneurs use this type of corporation to get taxed as if they were sole proprietors or business partners.
A type of business, that is owned by one or more individuals, that is taxed like a partnership.
An S corporation, which is limited to 75 or fewer shareholders, provides the benefits of incorporation, but it eliminates "double taxation," which is when the profits of a corporation are taxed first as income to the corporation and then second as income to the shareholders when profits are distributed as dividends.
Share , Shareholder , Sole Proprietorship
A federal election that allows a corporation to be granted a special tax status as specified under the Internal Revenue Code (IRC). S-Corporations pay no income tax, rather all gains or losses of the corporation pass through to the individual shareholders in proportion to their holdings.
An S-Corporation is a type of corporation taxed under subchapter S of the Internal Revenue Code. An S-Corporation is generally like a C-Corporation, but is limited to 35 shareholders, can only use domestic capitalization and is taxed only to the shareholders at their individual rates.
After a corporation has been formed, it may elect "S corporation status" by submitting a form to the Internal Revenue Service (some states require their own version). Once this filing is complete, the corporation is taxed like a partnership or sole proprietorship rather than a corporation. Thus, the income is "passed-through" to the shareholders for purposes of computing tax returns.