S-Corp

An S-Corp is a type of business structure that combines the benefits of a corporation with some tax advantages of a partnership. It allows the company's income, deductions, and credits to pass directly to its shareholders, who report them on their personal tax returns. This helps avoid double taxation, where both the company and the owner are taxed separately. S-Corps also provide liability protection, meaning owners are typically not personally responsible for business debts. To qualify, a company must meet specific IRS requirements regarding ownership, size, and structure.