What is an "S-Corporation"?

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	What is an "S-Corporation"?

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"S-Corporation"means "Small Business Corporation".

After a corporation has been formed, it may elect "S-Corporation" status by submitting a form to the IRS (some states require their own version). Once this filing is complete, the corporation is not double taxed like a regular corporation. Thus, the income is "passed-through" to the shareholders for purposes of computing tax returns (you take the money that you earned and simply add it to your 1040 personal tax return).

Most new small business corporations (90% or more) elect "S-Corporation" Status. "S-Corporations" can also revert back to regular Corporations fairly easily.

There is more detail here: http://www.mynewcompany.com/entity.htm#scorp

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What is an "S-Corporation"?