A special type of corporation where profits are distributed to stockholders and taxed as personal income is called a(n)

The type of corporation you are inquiring about is known as an "S Corporation" (or "Subchapter S Corporation"). An S Corporation is a special designation that allows profits (and some losses) to be passed through directly to owners' personal income without being subject to corporate tax rates. This means that the income is taxed at the individual level, and the corporation itself generally does not pay federal income taxes. S Corporations provide certain advantages in terms of tax benefits and limited liability protection for the owners, making them a popular choice for small businesses. Players interested in this format must adhere to specific regulations regarding the number of shareholders and the types of shareholders to qualify for S Corporation status.