What is a s corporation?

Definition s corporation

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.

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Corporate Glossary



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