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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.
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