Essentially, an S corp is any business that chooses to pass corporate income, losses, deductions, and credit through shareholders for federal tax purposes, with the benefit of limited liability and relief from “ double taxation.” Some 30 million business owners include business profits on their personal income tax returns. S Corporation is a variation of a corporation within Subchapter S of Chapter 1 of the Internal Revenue Code. S corporation shareholders must be individuals, specific trusts and estates, or certain tax-exempt organizations.Obtain 2,000+ templates to start, plan, organize, administration, finance and grow insert store. Shareholders report income and losses on individual tax returns, and pay taxes at ordinary tax rates. Quickly create your S Corp Operating Agreement Style - Download Word Template.Corporate taxes filed under Subchapter S may pass business income, losses, deductions, and credits to shareholders.Requirements give a corporation with 100 shareholders or less the benefit of incorporation while being taxed as a partnership.An S corporation, also known as an S subchapter, refers to a type of legal business entity.
