S Corporation

(redirected from S-Corps)
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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 ?
Third, because of the new rates for businesses, some might be better off moving from an S-corp back to a C-corp.
For affluent SBOs who can count on significant S-corp profits, that's not much of a concern.
2343 to increase payroll taxes on S-Corps and partnerships by $9 billion.
Entrepreneurs beginning a small business with little expectation for massive growth should create a S-elected LLC or a S-Corp for tax purposes.
Premiums for long term care insurance are deductible for S-corps and C-corps.
The companies are structured as S-corps and funded with personal savings and two bank loans, the second of which recently helped them open their 6,600-square-foot retail store and warehouse with a prominent storefront on Ward Avenue.
Erickson and Wang (2002) argue that S-corps can be sold for more than C-corps because of favorable tax treatment.
Butler lists his clients as "individuals, C-corps, S-corps.
Trump also proposed a lower tax rate for pass-through entities, like S-Corps, partnerships and LLCs, which could potentially mean some independent advisors (and teams) could see their business taxes fall to 15%.
But others of similar size are organized as S-corps and would see no change to their tax bill at all.
Pensions aside, Underwood points out that the recently passed health care bill will likely equalize the tax treatment of S-corps.