Definition: A qualifying corporation or eligible entity with an effective election to be treated under Subchapter S for federal tax purposes, generally passing income, losses, deductions, and credits to its shareholders.
Example
An eligible brokerage entity makes an S election and reports shareholders' shares of its tax items.
Keep the distinction clear
S status is a tax classification, not a separate real estate license. Eligibility, compensation, and other tax rules still apply.
Related terms
Corporation ยท Limited Liability Company (LLC)
Keep studying
References: IRS: S corporations
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