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S Corporation

An S Corporation is a form of corporation in which all taxes of the corporation flow through to the tax returns of the shareholders. Like shareholders of public corporations, the shareholders of an S corporation are not responsible for the liabilities of the corporation.

An S corporation must meet a variety of restrictions in order to qualify. These restrictions include limits on the number of shareholders and the gross revenue of the corporation. Because of these restrictions, S corporations are invariably privately held.

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