Subchapter S Corporation
/ˈsʌbˌtʃæptər ɛs ˌkɔrpəˈreɪʃən/
Definitions
- (n.) A corporation that elects to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes under Subchapter S of the Internal Revenue Code.
The company chose to be treated as a Subchapter S corporation to avoid double taxation.
Forms
- subchapter s corporation
- subchapter s corporations
Related terms
See also
Commentary
Subchapter S election permits avoidance of corporate-level income tax, but involves strict eligibility criteria such as a limit on the number and type of shareholders.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.