S Corporation Election
/ˌɛs ˌkɔːrpəˈreɪʃən ɪˈlɛkʃən/
Definitions
- (n.) A formal designation by a corporation to be taxed under Subchapter S of the Internal Revenue Code, allowing income to pass through to shareholders and avoid double taxation.
The company filed an S corporation election to benefit from pass-through taxation.
Forms
- s corporation election
Related terms
See also
Commentary
Ensure timely filing with the IRS (usually within two months and 15 days of the tax year start) to qualify for S corporation status.
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