S-Corporation

Also known as a Subchapter S Corporation. It generally avoids double taxation (taxation at both the entity and stockholder level). An S-corporation is a pass-through entity for tax purposes, which means that it generally does not pay an entity level tax. Instead, the S-corporation’s profits and losses generally pass through to its stockholders, who include their respective share of those items on their income tax returns (whether or not the profits or losses have been distributed).