S Corporation
A corporation that passes income through to shareholders, avoiding double tax.
What is S Corporation?
Keeps corporate limited liability but is taxed like a partnership: income and losses flow to shareholders' returns. Restricted to 100 or fewer shareholders, generally US citizens or residents, and one class of stock.
S Corporation: a worked example
A small manufacturer owned by six family members elects S status to avoid corporate-level tax.
More terms in Clients, Strategy & Tax
Sole Proprietorship
A business owned by one person with no legal separation from the owner.
General Partnership
Co-owners share management and unlimited liability; income passes through.
Limited Liability Company (LLC)
Limited liability for owners with pass-through taxation by default.
C Corporation
A separate taxpayer - profits taxed at the corporate level, then again as dividends.
Trust & Estate Accounts
Accounts run by a fiduciary - a trustee or an executor - under a governing document.
Foundations & Charities
Tax-exempt organizations investing for a mission, often in perpetuity.
Client Profile & Data Gathering
The financial and nonfinancial facts every recommendation must rest on.
Investment Objectives
Preservation of capital, income, growth, growth and income, speculation.