S Corporation

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S Corporation

A corporation that elects not to be taxed as a corporation. That is, the corporation does not directly pay federal income tax on its earnings. Similar to a partnership, it passes its income or losses and other tax items on to its shareholders.

S Corporation

A business with few shareholders that is exempt from some taxes levied on other corporations. Specifically, an S corporation is not responsible for taxes on its profits (corporate taxes) and is taxed as if it were a partnership. However, it may have no more than 100 shareholders. An S corporate structure allows a company to take advantage of some of the benefits of incorporation without all of the responsibilities attached to it.
References in periodicals archive ?
forms S Corp. with $20 for all of S's stock and S borrows $24 from a lender.
owns 79% of S Corp. and wants to combine S's operations with its own for state income tax purposes, but wants to keep S's liabilities separate from its operations.
owns and directly operates business A and wholly owns subsidiaries S Corp. and S1 Corp.
conducts business A and wholly owns S Corp., which conducts businesses B and C, and S1 Corp., which conducts business D.
conducts business A; its wholly owned subsidiary, S Corp., conducts business B and owns LLC-1, a disregarded entity that owns business C.
acquires 100% of S Corp.'s stock for cash in a QSP.