S corp
Tax-advantaged business structure
An S corp is a type of U.S. business corporation that elects special tax status, allowing profits and losses to pass through directly to shareholders' personal tax returns rather than being taxed at the corporate level.
The "S" refers to Subchapter S of the Internal Revenue Code.
Compared to a standard C corporation, an S corp avoids double taxation but faces restrictions on number and type of shareholders: We structured the company as an S corp to simplify taxes.
- limited liabilityCapped financial responsibility for owners
- taxesMandatory government payments
- shareholdersOwners of company stock
- payrollStaff wages collectively
- dividendsProfits paid to shareholders
small business · business owner · pass-through · double taxation · quarterly · accountant · liability · profits · distributions · personal assets · bylaws · EIN · self-employment · elections · stock · officers · board meeting · minutes
- business entitiesLLC, sole proprietorship, partnership, company, subsidiary
- business ownershipowner, sole proprietor, sole proprietorship, co-owner, proprietor
- legal entitieslaw firm, LLC, company, nonprofit, partnership
- private companiesstartup, Ltd, LLC, partnership, sole proprietorship
- tax strategiestax shelters, tax deferral, tax planning, tax avoidance, tax breaks
- taxpayersindividual, dependent, head of household, resident, nonresident
S corpsole proprietorship
Unincorporated individual-owned business
general partnership · nonprofit corporation · public company · LLC · limited partnership
corporation, corporate, corporatism, corporatist, corps, corpse, corpus, corporeal, corporal