What is an “S” Corporation?

Question: What is an “S” Corporation?

Answer: An “S” corporation is not a matter of state corporate law but rather a federal tax election. A for-profit corporation elects to be taxed as an “S” corporation by filing an election with the Internal Revenue Service. For more details, you should contact competent tax counsel regarding the decision to be taxed as an “S” corporation and the requirements for filing the election.