S Corporation
A corporate tax election that allows business income to pass through to owners' personal tax returns, avoiding the double taxation of a standard C corporation.
An S corporation isn’t a separate business structure so much as a tax election available to an eligible corporation or LLC, letting profits and losses pass through directly to shareholders rather than being taxed at both the corporate and personal level.
S corps have specific eligibility rules, including a cap on the number of shareholders and restrictions on who can own shares, which is worth understanding before assuming it’s the right structure for a growing or multi-owner business.
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