Subchapter S Corporation


A form of corporation, allowed by the IRS for most companies with 75 or fewer shareholders, which enables the company to enjoy the benefits of incorporation but be taxed as if it were a partnership. also called S Corporation.

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You need to make sure that you keep up to date with the subchapter S corporation so that you know how things stnad.

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The certified public accountant had recommended that the small business owner change its formal designation with the state to a subchapter s corporation.

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Since they were only a 20 person company, they were able to be a subchapter S corporation. They had no plans on growing past 75, so it would never be an issue.

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