<P> An S corporation , for United States federal income tax purposes , is a closely held corporation ( or , in some cases , a limited liability company ( LLC ) or a partnership ) that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code . In general , S corporations do not pay any income taxes . Instead , the corporation 's income or losses are divided among and passed through to its shareholders . The shareholders must then report the income or loss on their own individual income tax returns . </P>
<P> An S corporation , for United States federal income tax purposes , is a closely held corporation ( or , in some cases , a limited liability company ( LLC ) or a partnership ) that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code . In general , S corporations do not pay any income taxes . Instead , the corporation 's income or losses are divided among and passed through to its shareholders . The shareholders must then report the income or loss on their own individual income tax returns . </P>
who pays the taxes within an s corporation
who pays the taxes within an s corporation
shareholders
shareholders