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S-Corporation

A tax election that lets a US corporation or LLC pass its profit through to its owners; not available if any owner is a non-resident alien.

The short answer, then the detailChecked September 2026

The detail

What it means in practice.

An S-Corporation isn't a different kind of company. It's a corporation, or an LLC taxed as one, that has elected on Form 2553 to pass its profit through to its shareholders. Only US citizens and residents, and certain trusts and estates, can be shareholders, so a founder living abroad can't make the election, whatever a sales page suggests.

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