Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

S corporation

Read a random definition: unbanked

A quick definition of S corporation:

An S corporation is a type of company that is taxed differently than a regular corporation. Instead of being taxed twice, once at the corporate level and again when profits are distributed to shareholders, an S corporation's profits and losses are passed on to its shareholders to be declared on their individual tax returns. However, there are some restrictions on who can be a shareholder in an S corporation, such as a limit on the number of shareholders and the types of entities that can own stock. S corporations are often used by small businesses and closely held companies that want to avoid double taxation.

A more thorough explanation:

An S corporation is a type of corporation that is taxed differently from a regular corporation, also known as a C corporation. In an S corporation, the profits and losses are passed through to the shareholders, who report them on their individual tax returns. This means that the corporation itself does not pay taxes on its income, but the shareholders do.

For example, let's say that an S corporation has three shareholders. In a given year, the corporation earns $100,000 in profits. The profits are divided among the shareholders based on their ownership percentage. If one shareholder owns 50% of the corporation, they would report $50,000 in income on their tax return. If another shareholder owns 25%, they would report $25,000 in income, and so on.

One advantage of an S corporation is that it avoids the "double taxation" that can occur with a C corporation. In a C corporation, the corporation pays taxes on its profits, and then the shareholders pay taxes again when they receive dividends. With an S corporation, the profits are only taxed once, at the individual shareholder level.

However, there are some restrictions on who can form an S corporation. For example, an S corporation cannot have more than 100 shareholders, and all shareholders must be individuals or certain types of trusts. Additionally, an S corporation can only have one class of stock, which means that all shareholders must have the same rights and privileges.

Overall, S corporations are a popular choice for small businesses and closely-held corporations that want to avoid double taxation and have a simpler tax structure.

Running with the land | Safe harbor

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
JumpySubsequentDolphin
11:57
go back to Covid days
m10
11:58
Nah nah she would not like that. She is conservative.
BulbasaurNoLikeCardio
11:58
Tell her you just got over a cold and if she wants to try and steal your germs its on her but no one likes being sick so hopefully she is chill
m10
11:59
We will see. This is enough feedback. Thank you all.
12:00
tell her you wanna test and see if your immune systems are compatible, that gets the ladies going
m10
12:00
Lol, maybe
babycat
12:00
lmao when you give the republican baddie the ick by masking up
12:01
LOL
Dkk
12:02
Just part of the culture.
BulbasaurNoLikeCardio
12:04
I wish that wearing a mask when sick stuck around as an okay thing like it is in the rest of the world, not all of us have enough sick days to be ditching work.
Dkk
12:04
Unless its like an N95 i dont think it will really do anything
12:04
there's even a mask ban in some places. altho one of my coworkers wears a mask anyway despite customers being rude to her about it
12:05
good morning
12:05
why does umiami ask "Are you applying, or have you applied, to other law schools? If so, please list them."
BulbasaurNoLikeCardio
12:05
One manager came in sick wearing a mask, got roasted and stopped wearing it that day. The entire office has been cycling sickness for two weeks now. It may not be super effective but it may help in slowing the spread during meetings when we have to be so close
12:05
am i the only one who has never gotten my status checker to work on here?
BulbasaurNoLikeCardio
12:06
@ChowieBean: want to see what schools they share an applicant pool with, think it is all data harvesting stuff no a +/- for the applicant
12:06
ok good cuz idk whether i wanna tell them or not
12:06
thanks bulbasaur
12:08
not to be that guy again but berkeley person/applicant id is back and Shiny New Logo
be that guy
EW THE NEW LOGO IS SO UGLY
WTF
12:09
need to send in my berkeley app rawwwww
BulbasaurNoLikeCardio
12:09
@ChowieBean: should be required to tell them, the schools who asked I only told them the schools in their area not all of them.
BulbasaurNoLikeCardio
12:10
*shouldnt be
12:12
@jackfrost11770: if i get a berk A today and they have that logo im withdrawing (/s /s /s /j /j /j)
babycat
12:12
@ChowieBean: me too lol. you applying to public interest scholars program?
12:14
yes def applying public interest
12:16
i was raised like blocks away from umiami
LSD+ is ad-free, with DMs, discounts, case briefs & more.