What Type of Stock Does an S Corp Have?

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An S corporation is a company structured under the sub-chapter S tax code of the Internal Revenue Service. This tax election allows the earnings to pass directly to the owners, thereby avoiding corporate income taxation. Subchapter S corporation rules allow for only one class of common stock and preferred stock is not allowed.

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Robert Thorne

Robert Thorne

Robert Thorne covers electric vehicle innovations, autonomous driving systems, global mobility trends, and automotive engineering developments.

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