The formation of a Subchapter S corporation is a way to circumvent the double taxation of a small corporation.

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Subchapter S corporations are a type of corporation that allows for pass-through taxation, which means that the corporation's profits are not subject to corporate income tax. Instead, the profits are passed through to the shareholders, who report the income on their personal tax returns and pay individual income tax on it. This avoids the double taxation that occurs with traditional C corporations, where the corporation's profits are taxed at the corporate level and then again when distributed to shareholders as dividends.

The Formation of a Subchapter S Corporation Is a Way