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
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This means founders must carefully weigh the trade-offs between forming a C corporation and opting for a pass-through entity such as an LLC or S corporation.
—Robert W. Dietz, Fortune, 20 Nov. 2025
This allows sole proprietors, partners and S corporation shareholders to deduct 20% of their business income, with certain exceptions.
—Cheryl Winokur Munk, CNBC, 5 Oct. 2025
Deduction Sole proprietors and owners of pass-through businesses like limited liability corporations (LLCs), S corporations, and partnerships may be eligible for a deduction of up to 20% to lower the tax rate for qualified business income.
—Kelly Phillips Erb, Forbes.com, 11 Sep. 2025
Among the various business tax provisions, small businesses, including partnerships and S corporations, will be able to subtract 23% of their qualified business income from their taxes.
—Kevin Freking, Los Angeles Times, 21 May 2025
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Robert W. Dietz, Fortune, 20 Nov. 2025
This allows sole proprietors, partners and S corporation shareholders to deduct 20% of their business income, with certain exceptions.
—Cheryl Winokur Munk, CNBC, 5 Oct. 2025
Deduction Sole proprietors and owners of pass-through businesses like limited liability corporations (LLCs), S corporations, and partnerships may be eligible for a deduction of up to 20% to lower the tax rate for qualified business income.
—Kelly Phillips Erb, Forbes.com, 11 Sep. 2025
Among the various business tax provisions, small businesses, including partnerships and S corporations, will be able to subtract 23% of their qualified business income from their taxes.
—Kevin Freking, Los Angeles Times, 21 May 2025
Cite this Entry
“S corporation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/S%20corporation. Accessed 1 Dec. 2025.
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