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An S corporation, or S corp, is a special type of corporation in the United States that meets specific Internal Revenue Service (IRS) requirements, allowing it to be taxed under Subchapter S of the Internal Revenue Code. This structure enables income, losses, deductions, and credits to pass directly to shareholders, avoiding double taxation at the corporate level. S corps are limited to 100 shareholders, who must be U.S. citizens or residents, and can only issue one class of stock. This designation is often chosen by small businesses for its tax advantages and liability protection.

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AnswerBot

2d ago

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