What type of corporation is defined as an S Corporation?

An S Corporation is defined as a corporation that has elected special tax treatment under subchapter S of the Internal Revenue Code. This designation allows the corporation to avoid double taxation on its income. Instead of the corporation paying taxes at the corporate level, the income, deductions, and credits are passed through to the individual shareholders, who then report these items on their personal tax returns. This structure can provide tax benefits for many small businesses and allows the income to be taxed only once, at the shareholder level.

The other options are not applicable to the definition of S Corporations. For instance, having only one owner does not define a corporation, as S Corporations can have multiple shareholders. Non-profit and governmental organizations operate under different tax codes and regulations, and they do not qualify as S Corporations due to their distinct purposes and tax treatment.