S Corporation

An S-Corporation, or S-Corp, is a special type of corporation in the United States that allows profits and losses to be passed directly to shareholders without being taxed at the corporate level. This means that income is only taxed once, at the individual level, helping to avoid double taxation common with regular corporations (C-Corps). To qualify, an S-Corp must meet certain requirements, including having no more than 100 shareholders and being a domestic business entity. This structure can offer liability protection to its owners while providing potential tax advantages.