Subchapter S (S Corporation)
- Subchapter S (S Corporation)
- A form of corporation that meets the IRS requirements to be taxed under Subchapter S of the Internal Revenue Code. This gives a corporation with 100 shareholders or less the benefit of incorporation while being taxed as a partnership. This means that any profits earned by the corporation are not taxed at the corporate level, but rather at the level of the shareholders. Also known as "S corporation".
Having S corporation status can prove a huge benefit for a corporation. The corporation can pass income directly to shareholders and avoid the double taxation that is inherent with the dividends of public companies, while still enjoying the advantages of the corporate structure. In order to qualify, a corporation must be a small business corporation. This means the following requirements must be met:
1) Must be a domestic corporation
2) Must not have more than 100 shareholders
3) Must include only eligible shareholders
4) Must have only one class of stock
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
subchapter S corporation — n: s corporation at corporation Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
corporation — cor·po·ra·tion /ˌkȯr pə rā shən/ n [Late Latin corporatio, from Latin corporare to form into a body, from corpor corpus body]: an invisible, intangible, artificial creation of the law existing as a voluntary chartered association of individuals… … Law dictionary
subchapter S — / es/ n: a subchapter of chapter 1 of the Internal Revenue Code that allows a small business corporation s taxable income to be computed in a manner similar to that used for a partnership see also s corporation at corporation Merriam Webster’s… … Law dictionary
corporation, C — n. A corporation formed under Subchapter C of the Internal Revenue Code; also called a Subchapter C corporation. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
Subchapter C corporation — >> C corporation. Webster s New World Law Dictionary. Susan Ellis Wild. 2000 … Law dictionary
corporation — An artificial person or legal entity created by or under the authority of the laws of a state. An association of persons created by statute as a legal entity. The law treats the corporation itself as a person which can sue and be sued. The… … Black's law dictionary
corporation — An artificial person or legal entity created by or under the authority of the laws of a state. An association of persons created by statute as a legal entity. The law treats the corporation itself as a person which can sue and be sued. The… … Black's law dictionary
Subchapter S corporation — See corporation (S corporation) … Black's law dictionary
subchapter s corporation — Special provisions in the INTERNAL REVENUE SERVICE Code allowing a corporation under certain conditions to be taxed as if it were a partnership, thereby avoiding corporate taxation … American business jargon
Subchapter S — IRS regulation that gives a corporation with 35 or fewer shareholders the option of being taxed as a partnership to escape corporate income taxes. Bloomberg Financial Dictionary … Financial and business terms
