What is an “S” Corporation?

An S Corporation is an election that’s a sole proprietor an LLC, or a corporation can make. It’s not a legal entity but it is how the entity elects to be taxed. So if you elect to be taxed as an S corporation, then the taxes will actually flow through to the owner instead of the company paying taxes once and then the owner or shareholders paying taxes again, on top of what taxes were already paid by the corporation. So it’s something to speak to your accountant about.