A corporation created under the laws of a state that has applied for “S” tax status with the IRS and corresponding state tax authority. Typically elected in order to avoid double taxation by having flow-through taxation to the individual shareholders. Some S-corporation requirements are: must have 100 or fewer shareholders, shareholders must be US citizens and must only issue one class of stock.
« Back to Glossary IndexS-Corporation (AKA “subchapter S Corporation”)
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