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An S Corp, also referred as the subchapter or small business corporation, is an elected corporation that passes the corporation’s income, deductions, credits and loss to their shareholders for federal tax purposes.It is a tax code that was enacted into law by Congress in 1958. The main advantages of S Corp companies are that shareholders can avoid double taxation unlike C-Corp on corporate income.The S Corp was created to encourage and support the creation of small and family businesses.
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