### Question
What does FSC mean?


### Answer
**FSC** has the following meaning in *26 U.S.C. § 922*:

> any corporation—


(1) which—


(A) was created or organized—


(i) under the laws of any foreign country which meets the requirements of section 927(e)(3), or


(ii) under the laws applicable to any possession of the United States,


  

(B) has no more than 25 shareholders at any time during the taxable year,


(C) does not have any preferred stock outstanding at any time during the taxable year,


(D) during the taxable year—


(i) maintains an office located outside the United States in a foreign country which meets the requirements of section 927(e)(3) or in any possession of the United States,


(ii) maintains a set of the permanent books of account (including invoices) of such corporation at such office, and


(iii) maintains at a location within the United States the records which such corporation is required to keep under section 6001,


  

(E) at all times during the taxable year, has a board of directors which includes at least one individual who is not a resident of the United States, and


(F) is not a member, at any time during the taxable year, of any controlled group of corporations of which a DISC is a member, and


  

(2) which has made an election (at the time and in the manner provided in section 927(f)(1)) which is in effect for the taxable year to be treated as a FSC

#### Citation:
  - *26 U.S.C. § 922*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart C-Taxation of Foreign Sales Corporations**

