How do we define: s corporation?
S corporation is a small corporation which elects subchapter S tax treatment pursuant to rules set forth by the IRS. 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.
Every new business owner must learn about incorporating their company. Learning how to incorporate your company is critical to starting up and protecting your future.