The S corp is a change of the tax code that congress enacted into law in 1958, primarily, to give a competitive leg up to small businesses.The subchapter or small-business corporation, commonly referred to as S corp, is a very popular hybrid business structure that provides both limited liability protection and pass-through taxation. Apart from some restrictions, S corps function in much the same way as C corps, i.e., they establish articles of incorporation, hold annual meetings, and publish minutes, to name a few.