An S-Corp is not a legal entity.

POV: Your friend says they “have an S-Corp” and you want one too.

But there’s layers to this.

An S-corporation (S-corp) is a tax election, not a legal entity, unlike a Limited Liability Company (LLC). An S-corp is a tax status that a corporation or an LLC can elect to be treated as for tax purposes with the Internal Revenue Service (IRS). To become an S-corp, the business must first be formed as a corporation or LLC and meet specific IRS requirements.

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Disclaimer: This post is strictly for general informational purposes only and is not intended to constitute legal or tax advice.

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