S-Corps, or S Corporations, are a type of corporation that has elected to pass corporate income, deductions, and credits through to their shareholders for federal tax purposes. This allows the company to avoid double taxation on the corporate income.
S-Corps have the same limited liability protection as C-Corps, but they are subject to more restrictions, such as having no more than 100 shareholders and only allowing certain types of shareholders. In terms of taxes, S-Corps are only taxed once on their income at the shareholder level, which can provide a tax savings compared to C-Corps.
