Subchapter S
/ˈsʌbˌtʃæptər ɛs/
Definitions
- (n.) A provision of the U.S. Internal Revenue Code that allows qualifying corporations to elect to be taxed as pass-through entities, avoiding double taxation on corporate income.
After forming their business, they opted for Subchapter S status to reduce their tax liability.
Forms
- subchapter s
Related terms
See also
Commentary
Subchapter S specifically refers to the federal tax classification under the Internal Revenue Code, crucial for small-business taxation planning.
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