S-corp

Tax-advantaged business structure

An S-corp (S corporation) is a business structure that passes income, losses, and deductions directly to shareholders, avoiding the double taxation of regular corporations.

The designation comes from Subchapter S of the Internal Revenue Code.

S-corps combine the liability protection of a corporation with the tax benefits of a partnership: We structured the business as an S-corp to reduce our tax burden.

structure

shareholder

Equity owner in corporation

  • pass-throughTransferred without retention
  • LLCHybrid business entity abbreviation
  • entityIndependent existing thing

articles · bylaws · stock · ownership · partnership · formation · capitalization · equity · shares

operations

payroll

Staff wages collectively

  • salaryFixed periodic employment payment
  • bookkeepingRecording financial transactions systematically
  • accountingMaintaining financial records

minutes · distributions · profit-sharing · 401k · SEP-IRA · reimbursement

taxation

IRS

Federal tax collector

Medicare

eligibility

trust

Confidence in another

election · revocation · termination · disqualification · restrictions · requirements · compliance

Categories
Opposites
business entity type

S-corpsole proprietorship

Unincorporated individual-owned business

general partnership · nonprofit corporation · cooperative · LLC · public corporation

Family

corp, corporation, corporations, corporate, corporately, corporatism, corporatist, incorporate, incorporated

Familiarity
Top 500,000
Profile
Mostly American · Timeless · Abstract · Rated G