# S-corp

Concept · [Fundraising and equity](https://ecosystem.samcarlton.com/fundraising)

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

A [corporation](https://ecosystem.samcarlton.com/c-corp) that has chosen a US tax status in which [profits](https://ecosystem.samcarlton.com/profit) and [losses](https://ecosystem.samcarlton.com/loss-function) 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](https://ecosystem.samcarlton.com/profit) shows up on each owner's personal tax return.

## Connects to (4)

- [C-corp](https://ecosystem.samcarlton.com/c-corp): C corporation.
- [LLC](https://ecosystem.samcarlton.com/llc): Limited liability company.
- [Profit](https://ecosystem.samcarlton.com/profit): What is left of your revenue after every cost is paid.
- [EIN](https://ecosystem.samcarlton.com/ein): Employer Identification Number.

> 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.

Map view: https://ecosystem.samcarlton.com/s-corp