Definition of Sub Chapter S Corporation

Sub Chapter S Corporation is a business organization that allows the tax consequences of the organization to flow through to the owners

Applying "Sub Chapter S Corporation" to Securities Exams:

Business owners have a number of choices on how they organize their new entity legally and for tax purposes. Unlike a C corp or traditional corporation which pays taxes at the corporate level, an S corp allows the earnings to flow though to the owners and the owners pay the taxes at their personal tax rate.

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