A corporation that qualifies and elects to be an S corporation under the Internal Revenue Code. Unlike C corporations, S corporations typically do not pay taxes to the federal government. Instead, most S corporations are taxed indirectly through their shareholders. An S corporation must have a limited number of shareholders, giving rise to the related statutory term "small business corporation." 26 U.S.C. § 1361(b)(2).
- [[wex:C corporation]]
- [[wex:Income tax]]