S-Corporation
An S Corporation is taxed under Subchapter S of the Internal Revenue Code (IRC) and need not recognize gain or loss associated with sale, distribution, or liquidation. This is in contrast to C Corporations which must recognize, and are taxed upon, gain or loss associated with such transfers. However, the shareholders of both S Corporations and Corporations must recognize gain or loss associated with such transfers.
This brief overview of some important considerations associated with S Corporations is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.