Concept · Fundraising and equity

S-corp

Also called: S corporation, S corp, scorp, subchapter S, S election

A corporation that has chosen a US tax status in which profits and losses pass through to the owners' own tax returns. The tax rules limit who can be a shareholder.

For example: The owners of a small consulting firm elect S-corp status. The firm's profit shows up on each owner's personal tax return.

Connects to 4

• C-corp Concept
• LLC Concept
• Profit Concept
• EIN Concept

This glossary is plain-language orientation, not legal or financial advice. Before you decide on a company structure, a contract, taxes or a fundraising deal, talk with a lawyer or an accountant.