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Setting Up Your Own Business:The "S" Corporation

Paul Gessaman (January, 1996)

Summary

An "S Corporation" is a corporation that elects to be taxed under Subchapter S of the Internal Revenue Code (enacted in 1958 and periodically amended) and receives IRS approval of its request for Subchapter S status. As a legal entity (an artificial person), the S corporation is separate and distinct from the corporation´s owners (the stockholders). Under Nebraska incorporation law, there is no distinction between a C corporation and an S corporation.