Thin Corporation Law and Legal Definition
Thin corporation is a corporation with large debts to its shareholders and very little equity. In such a situation, the Internal Revenue Service (IRS) may reclassify the debt as equity investment, which means payments to shareholders do not include tax-deductible interest but are dividend payments. It is to be noted that thinly capitalized corporations are used for a variety of sophisticated tax planning vehicles.
Legal Definition list
Related Legal Terms
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]
- Airworthiness
- Airworthiness Certificate
- Alaska Native Corporation
- All-or-Nothing Rule
- Amended and Restated Articles of Incorporation
- American Municipal Bond Assurance Corporation
- Ancillary Corporation
- Anything of Value
