What is an S-Corporation?
The formation of an S corporation will require an entity to first form a C corporation and then make a subsequent S election. Unlike C corporations, companies that elect S status will not be taxed at the entity level.
Instead, their income will be “passed through” to the shareholders of the corporation and will be taxed at the individual level (1040 tax return).
S Corporations must have less than 100 shareholders! That means they will not be a publicly traded company!

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