A Sub-chapter S Corporation is a corporation whose profits and losses are taxed to its owners on their individual income tax returns instead of being taxed as a corporation. Sub-chapter S status must be elected by the corporation after it is chartered. Sub-chapter S status allows a corporation the limited liability benefits of a corporation with the tax benefits of taxation at the personal tax rate.
Sub-chapter S Corporation
By Jean Murray, About.com
Explore US Business Law / Taxes
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