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 ?

It finds that banks with higher risk and banks that are not owned by a BHC have higher capital ratios, but that no economically significant relationship exists between capital holdings and S-corp banks.

Another organizational difference that might influence bank capital holdings is the tax treatment for S-corp banks.

The effect of risk and organizational structures on bank capital ratios

2343 would pay for the interest rate extension by ending an exemption that allows high-income earners who run S-Corps to shield some of their income from payroll taxes.

House passes bill to freeze student loan rates

In contrast, federal law caps the number of S-corp.

Starting a new practice? Don't forget about the tax type

While S-elected LLCs are not new, many business owners believe that they have to choose between the tax incentives of a S-Corp and the ease of an LLC.

The ABCs of LLCs and corporations: tips to selecting the right legal structure

What is the distinction in treatment between an employee who pays FICA taxes, a shareholder of an S-Corp who receives a distribution and who is not an employee of the company, and a shareholder who is both a shareholder and an employee of the S-Corporation?

S-Corporations and federal employment taxes: safe harbors and sunken ships

Health Insurance Deductibility: Health insurance expenses for S-corp owners and Schedule C filers should be fully deductible as a business expense with no limits.