S corporation
S corporation is a small corporation that, under Subchapter S of the Internal Revenue Code, elects to be taxed as a proprietorship or a partnership yet retains limited liability and other benefits of the corporate form of organization.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- S corporation. A small corporation that, under Subchapter S of the Internal Revenue Code, elects to be taxed as a proprietorship or a partnership yet retains limited liability and other benefits of the corporate form of organization.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- S corporation. A special designation that allows small businesses that meet qualifications to be taxed as if they were a proprietorship or a partnership rather than a corporation.
According to Management by Robbins and Coulter (14th edition),
- S corporation. A specialized type of corporation that has the regular characteristics of a C corporation, but is unique in that the owners are taxed as a partnership as long as certain criteria are met.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
