Glossary · People and paperwork
In short
A business entity that passes corporate income, losses, deductions, and credits through to its shareholders for federal tax purposes. This structure helps avoid double taxation on corporate income.
Many small businesses are structured as S-Corps. When buying an S-Corp, you're typically doing an asset purchase to avoid inheriting past liabilities, not a stock purchase. Understand how the seller's distributions affect the business's cash flow for your loan application.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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