Definition of S corporation:
The nature of the US business structure in which business income commensurate with its investment is passed on to its shareholders and is taxed at an income tax rate. A company S (S means small) can have only one type of shares and a limited number of shareholders. Also called the subject of corporations.
For more information, see the difference between S Corporation and LLC.
How to use S corporation in a sentence?
- I run and run my own small business and I suddenly realized that starting this company could save a few dollars in taxes.
- Mary's accountant reminds her that, as a shareholder in a company, the person must show the proceeds from those shares in their personal tax, but it is not a waste to own a small business.
- If you run a small business, you need to ask yourself what it means to go to an S-based company to save on taxes.
Meaning of S corporation & S corporation Definition