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 ?

535) Black's Law Dictionary describes a Subchapter S corporation as a corporation whose income is taxed through its shareholders rather than through the corporation itself.

Taxation

It is now organized as a Subchapter S corporation with eight shareholders who are all related family members.

Why private companies stay private: the FEI research foundation asked senior financial executives of five privately held companies to tell why they stay private. Here's what they said. (Private Companies)

Speier amended the bill at the last minute to eliminate the denial of Subchapter S status and to simply impose a tax on Subchapter S Corporations higher than the 1 percent currently imposed, but the bill failed to meet the deadline.

Legislature in OT: plenty of issues--from Regs to outsourcing--keep officials busy

These figures included companies that had zero earnings as well as Subchapter C and Subchapter S corporations.

Leading the way: how African American businesses can help alleviate unemployment for blacks

Under the SBJPA, the law governing subchapter S corporations underwent numerous changes, one area of which will open up new estate planning opportunities for CPAs concerning the types of trusts allowed to hold S corporation stock.

Electing small business trusts

63) See Joint Committee on Taxation, Law and Proposals Related To Subchapter S Corporations and Home Office Deductions (JCS-16-95), 5/24/95, Table 3.

Current developments - eligibility, elections and terminations; operations; reorganizations; and legislation

As a result, the only firms represented are individual proprietorships, partnerships and Subchapter S corporations.

Is Black business paving the way?

Part of the problem with the Census Bureau report is its use of administrative data which includes only individual proprietorships, partnerships and Subchapter S corporations.

How the Census Bureau devalues Black businesses

2) Joint Committee on Taxation, Present Law and Proposals Relating To Subchapter S Corporations and Home Office Deductions (JCS-16-95), 5/24/95, Table 3.

S corporation current developments: S corporation eligibility, elections and terminations; operations; reorganizations; and proposed legislative changes

This is because the Census counts only individual proprietorships, partnerships and Subchapter S Corporations, while excluding other legal forms of business organization, including Subchapter C Corporations.