S corporation


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

Examples of S corporation in a Sentence

Recent Examples on the Web In addition, special rules for partners and certain S corporation shareholders allow businesses to reimburse their owners for Medicare premiums. Margie Zable Fisher, Fortune Well, 24 Aug. 2023 The S corporation takes a deduction as wage expense for the amount of premiums paid or reimbursed. Vlad Rusz, Forbes, 23 Mar. 2023 This includes taxes from individuals and from sole proprietorships, partnerships, S corporations and limited liability companies that file business income on personal tax returns. Kathleen Pender, San Francisco Chronicle, 2 Mar. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'S corporation.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1960, in the meaning defined above

Time Traveler
The first known use of S corporation was in 1960

Dictionary Entries Near S corporation

Cite this Entry

“S corporation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/S%20corporation. Accessed 27 Sep. 2023.

Legal Definition

S corporation

see corporation

Last Updated: - Updated example sentences
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