Definition
An S Corporation (S Corp) is a business structure that allows income, losses, deductions, and credits to pass through to shareholders for tax purposes, avoiding double taxation.
Related Services
S Corps are frequently used in tax planning, corporate structuring, and small business legal consulting.
Problem and Application
While S Corps provide tax benefits, they come with strict eligibility requirements, such as a limit on the number of shareholders and restrictions on stock issuance.
Conclusion
For qualifying businesses, S Corp status offers significant tax advantages, but careful compliance with IRS regulations is required.
