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What is an S-Corporation?

An "S-Corporation" is a regular corporation that has between 1 and 100 shareholders and that passes-through net income or losses to shareholders. An S Corp is a corporation that elects to be treated as a pass-through entity (such as a sole proprietorship or partnership) for tax purposes.

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InfoTaxSquare.com wrote on : Sat Dec 05th,2009 Back to Article

S-Corporation is a pass through entity. Profit or loss pass through to your personal income tax return to calculate taxes. But to decide the structure of your business we strongly recommend to consult either your attorney or accountant.