A Subchapter S (S Corporation) is a form of corporation that meets specific Internal Revenue Code requirements, giving a corporation with 100 shareholders or less the benefit of incorporation while being taxed as a partnership. The corporation can pass income directly to shareholders and avoid the double taxation that is inherent with the dividends of public companies, while still enjoying the advantages of the corporate structure. Requirements include being a domestic corporation, not having more than 100 shareholders, including only eligible shareholders and having only one class of stock.
Read more: Subchapter S (S Corporation) Definition | Investopedia http://www.investopedia.com/terms/s/subchapters.asp#ixzz4Tk5mBg9L
Follow us: Investopedia on Facebook