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
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
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, 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
Might a loan from an S corporation really be a disguised second class of stock which is prohibited?
—Martin Shenkman, Forbes.com, 30 Apr. 2025
Also, partnership returns, S corporation returns, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations and employment and certain excise tax returns.
—Howard Cohen, Miami Herald, 11 Apr. 2025
The loan has to come directly from you and go up to the S corporation.
—Tax Notes Staff, Forbes, 4 Mar. 2025
According to the most recent filing statistics from the IRS, over 4 million small businesses in the U.S. are taxed as S corporations, which equates to more than 60% of all businesses in the country.
—Cindy McGhee, Forbes, 3 Mar. 2025
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
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
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, 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
Might a loan from an S corporation really be a disguised second class of stock which is prohibited?
—Martin Shenkman, Forbes.com, 30 Apr. 2025
Also, partnership returns, S corporation returns, gift, and generation-skipping transfer tax returns; annual information returns of tax-exempt organizations and employment and certain excise tax returns.
—Howard Cohen, Miami Herald, 11 Apr. 2025
The loan has to come directly from you and go up to the S corporation.
—Tax Notes Staff, Forbes, 4 Mar. 2025
According to the most recent filing statistics from the IRS, over 4 million small businesses in the U.S. are taxed as S corporations, which equates to more than 60% of all businesses in the country.
—Cindy McGhee, Forbes, 3 Mar. 2025
Cite this Entry
“S corporation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/S%20corporation. Accessed 10 Jun. 2025.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
Share