S corporation

S corporation definition - business

S corporation

A corporation that qualifies for and chooses special tax status under the Internal Revenue Code. Corporate gains and losses are passed through to shareholders, who escape double taxation (corporate tax plus a tax on dividends) and are offered the protection of limited liability.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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