Jul 09 2010

What is an S corp? S corporation?

Category: Business & Economy

Answer:

A S corporation, or S corp, is often setup for small businesses with a few owners. This type of corporation permits its owners the ability to pass the profits and losses of the business through the shareholders as personal income. It is different from a C corp that only allows salary income to pass through without taxation. This feature eliminates the double taxation problem of a C corporation. So the corporation itself does not pay income taxes in certain states.


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