What Is the Owner of an S Corp Called?

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Overview of S Corporation Ownership

  • Role of an S Corporation Owner: An S corporation shareholder who performs services for the corporation will be its employee and shareholder. With a single shareholder, he or she can be called the president, CEO, or another title. An S corporation separates you from your company completely, for both operational and tax purposes. As the owner you are the sole shareholder and an employee. Many small business owners use S corporations. In fact, 70% have just one owner.

  • Ownership of S Corporation: An S corporation separates you completely from your company, for operational and tax purposes. The business is its entity, and you as the owner are the sole shareholder and an employee.

Key Facts about S Corporations

  • Do S Corp have owners?
  • What is another S Corp name? An S subchapter corporation.
  • Who Cannot be an S Corp owner? Those who are not U.S. citizens or residents. The law limits shareholders to 100. The exception is family members.
  • Can an S Corp have one owner? Yes. Most have just one.

General Information

Owners of a corporation are called shareholders. An “S” corporation can only have one class of stock.
A stock represents the ownership of a fraction of a corporation. A corporation pays its profits to shareholders as dividends.
An S corporation is a pass-through entity – income and losses pass through the corporation to the owners’ personal tax returns.
An S corp board of directors is a group that runs the corporation. It is sometimes referred to as a board of trustees or board of governors.
Both single-member and multi-member Limited Liability Companies can elect to be treated by the IRS as either an S Corporation or a C Corporation if they meet the requirements.
An S corporation can be a shareholder in a C corporation, but the ownership has limits.
One person can form an S corporation. Existence is perpetual for S corporations. The stock of S corporations is freely transferable.
Entrepreneurs starting a business today are more likely to choose an LLC than an S corporation.

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