S-Corporation
What does it mean
An S-Corp is a business entity similar to an LLC, offering liability protection for business debts. It's created by filing paperwork with State and Federal Governments. Notable S-Corp features include a 100 shareholder limit, individuals, certain trusts, and non-profit entities as shareholders, and income passing through to owners based on their ownership percentage.
Why does it matter
Community bankers frequently encounter S-Corps as a popular entity structure. Gaining a clear understanding of its characteristics, advantages, and disadvantages empowers bankers to assist borrowers in making informed decisions about the appropriate entity type for their needs.
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
