What is Legal Terms - S-Corporation?

S-Corporation Information: An S-Corporation is a corporation that has elected and qualified for a special tax status with the Internal Revenue Service. The main advantage associated with the S-Corporation is that income to the S-Corporation is not taxed to the corporation but it passes through to the shareholders. S-Corporations usually have fewer shareholders. In this manner, the S-Corporation avoids the perceived double taxation that happens to a traditional corporation. Most states do allow the S-Corporation to exist.