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Simple English definitions for legal terms

Subchapter S corporation

Read a random definition: laudum

A quick definition of Subchapter S corporation:

A Subchapter S corporation, or S corporation, is a type of company that is taxed differently than a regular corporation. Instead of paying taxes on profits at both the corporate and individual level, an S corporation's profits are only taxed once, at the individual level. This means that the shareholders of the company are responsible for paying taxes on their share of the profits. 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:

A Subchapter S corporation, also known as an S corporation, is a type of corporation that is taxed differently from a regular 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 profits.

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

S corporations are different from regular corporations, which are also known as C corporations. In a C corporation, the corporation pays taxes on its profits, and then the shareholders pay taxes again when they receive dividends. This is known as double taxation.

There are some restrictions on who can form an S corporation. The corporation must have fewer than 100 shareholders, and all of the shareholders must be individuals or certain types of trusts. The corporation can only have one class of stock, which means that all shareholders have the same rights and privileges.

S corporations are often used by small businesses and family-owned companies. They are also popular with companies that want to avoid double taxation. However, they are not suitable for companies that want to raise money from venture capitalists or other institutional investors.

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21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
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