The full name is Subchapter S corporation, named for the part of the IRS code that defines it. This is a way to incorporate your business (and shift the liability away from you and onto the business) without being double taxed as you would in a regular corporation, in which business tax comes out of the company and personal tax comes out of your income. Instead, profits and losses pass down to you as the shareholder, so you report them on your personal tax return. In other words, you pay taxes on every dollar the corporation earns (after all deductions have been calculated). A S corp must have no more than one hundred employees, and also be owned in the US of A; no foreign ownership.
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