What is an “S-Corporation”?

“S-Corporation“means “Small Business Corporation”.

After a corporation has been formed (all corporations are, by default, a “C-Corporation“), it may elect “S-Corporation” status by submitting form 2553 the IRS (some states require their own version). Once this filing is complete, the corporation is not double taxed like a regular corporation.

Most new small business corporations elect “S-Corporation” Status. “S-Corporations” can also revert back to regular C-Corporations.