An S Corporation is a type of business entity that allows companies to pass their income, losses, deductions, and credits through to their shareholders for federal tax purposes. This means that the corporation itself does not pay federal income tax. Instead, the shareholders report their share of the corporation’s income or loss on their personal tax returns. To qualify as an S Corporation, the business must meet certain requirements outlined in [Section 1361 of the Internal Revenue Code](https://www.law.cornell.edu/uscode/text/26/1361).
W