S Corporation at Legal Glossary

What is it? A term that describes a profit-making corporation organized under state law whose shareholders have applied for and received subchapter S corporation status from the Internal Revenue Service. Electing to do business as an S corporation lets shareholders enjoy limited liability status, as would be true of any corporation, but be taxed like a partnership or sole proprietor. That is, instead of being taxed as a separate entity (as would be the case with a regular or C corporation) an S corporation is a pass-through tax entity: income taxes are reported and paid by the shareholders, not the S corporation. To qualify as an S corporation a number of IRS rules must be met, such as a limit of 75 shareholders and citizenship requirements.

Law Definition Added By: Brayden

Send To Friends!

If you'd like to send the S Corporation definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of S Corporation. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Legal Terms:

Law Terms defeasance is A clause in a deed, lease, will or other legal document that completely or partially negates the document if a certain condition occurs or fails to occur. Defeasance also means the act of rendering something null and void. For example, a will may provide that a gift of property is defeasable -- that is, it will be void -- if the beneficiary fails to marry before the willmakers death.

Law Terms final beneficiary is The person or institution designated to receive trust property upon the death of a life beneficiary. For example, Jim creates a trust through which his wife Jane receives income for the duration of her life. Their daughter, the final beneficiary, receives the trust principal after Janes death.

Law Terms par value is The face value of a stock, assigned by a corporation at the time the stock is issued. The par value is often printed on the stock certificate, but the market value of the stock may be much more or much less than par.

Law Terms death taxes is Taxes levied at death, based on the value of property left behind. Federal death taxes are called estate taxes. Some states levy inheritance taxes on people who inherit property.

Law Terms self-defense is An affirmative defense to a crime. Self-defense is the use of reasonable force to protect oneself from an aggressor. Self-defense shields a person from criminal liability for the harm inflicted on the aggressor. For example, a robbery victim who takes the robbers weapon and uses it against the robber during a struggle wont be liable for assault and battery since he can show that his action was reasonably necessary to protect himself from imminent harm.