S corporation
noun
US law
: a small business corporation that is treated for federal tax purposes as a partnership
Because MDY is an S corporation, all net income is considered the owners' taxable income.—
Jill Andresky Fraser
Jill Andresky FraserExamples of S corporation in a Sentence
Recent Examples on the Web
Permanent and enhanced tax deductions Qualified Business Income (QBI) deduction: The 20% deduction for qualified business income, crucial for pass-through entities (sole proprietorships, partnerships, S corporations), is made permanent.
—Sydney Lake, Fortune, 8 July 2025
Businesses use structures like limited liability companies (LLCs) or S corporations to pass income through to the owners without paying tax at the company level.
—Kelly Phillips Erb, Forbes.com, 4 July 2025
So if an S corporation borrows from a bank, if a shareholder guarantees an S corporation's bank debt, none of that moves the needle for an S corp shareholder.
—Tax Notes Staff, Forbes, 4 Mar. 2025
Quarterly payments are due for individuals, sole proprietors, partners and S corporation shareholders who expect to owe at least $1,000 for the current tax year, according to the IRS.
—Kate Dore, Cfp®, Ea, CNBC, 15 June 2025
Taxpayers—including sole proprietors, partners, and S corporation shareholders—who expect to owe at least $1,000 in taxes for the year are generally required to make estimated tax payments.
—Aliss Higham, MSNBC Newsweek, 10 June 2025
For federal purposes, entities that have elected to be taxed as an S corporation will file Form 1120-S.
—Kelly Phillips Erb, Forbes.com, 6 June 2025
The deduction allows small businesses, including partnerships, sole proprietorships (who are often gig workers) and S corporations, to subtract 20% of their qualified business income from their taxes, lowering their tax liability.
—Alain Sherter, CBS News, 14 May 2025
The increase is a win for pass-through firms — partnerships, sole proprietorships and S corporations — which make up the vast majority of businesses in the US.
—Bloomberg, Mercury News, 13 May 2025
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Sydney Lake, Fortune, 8 July 2025
Businesses use structures like limited liability companies (LLCs) or S corporations to pass income through to the owners without paying tax at the company level.
—Kelly Phillips Erb, Forbes.com, 4 July 2025
So if an S corporation borrows from a bank, if a shareholder guarantees an S corporation's bank debt, none of that moves the needle for an S corp shareholder.
—Tax Notes Staff, Forbes, 4 Mar. 2025
Quarterly payments are due for individuals, sole proprietors, partners and S corporation shareholders who expect to owe at least $1,000 for the current tax year, according to the IRS.
—Kate Dore, Cfp®, Ea, CNBC, 15 June 2025
Taxpayers—including sole proprietors, partners, and S corporation shareholders—who expect to owe at least $1,000 in taxes for the year are generally required to make estimated tax payments.
—Aliss Higham, MSNBC Newsweek, 10 June 2025
For federal purposes, entities that have elected to be taxed as an S corporation will file Form 1120-S.
—Kelly Phillips Erb, Forbes.com, 6 June 2025
The deduction allows small businesses, including partnerships, sole proprietorships (who are often gig workers) and S corporations, to subtract 20% of their qualified business income from their taxes, lowering their tax liability.
—Alain Sherter, CBS News, 14 May 2025
The increase is a win for pass-through firms — partnerships, sole proprietorships and S corporations — which make up the vast majority of businesses in the US.
—Bloomberg, Mercury News, 13 May 2025
Cite this Entry
“S corporation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/S%20corporation. Accessed 26 Jul. 2025.
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