S-Corporation DefinitionS-Corporation Definition - S CorpBusiness Definition - S Corporation - S CorpS-Corporation Definition - S Corp-A corporation with 75 or fewer shareholders, that has elected and qualified for a special tax status with the Internal Revenue Service (IRS). The main advantage associated with the S-Corporation is that the income passes through to the shareholders, therefore avoiding a perceived double taxation of a C-Corporation.An "S Corporation" is a corporation that elects to be taxed under Subchapter S of the Internal Revenue Code (enacted in 1958 and periodically amended) and receives IRS approval of its request for Subchapter S status. As a legal entity (an artificial person), the S Corporation is separate and distinct from the corporation's owners (the stockholders). |