### Question
What does personal service corporation mean?


### Answer
**Personal service corporation** has the following meaning in *26 CFR § 1.441-3T*:

> any corporation (other than an S corporation) if—

(i) The principal activity of that corporation is the performance of personal services, and

(ii) Such services are substantially performed by employee-owners

#### Citation:
  - *26 CFR § 1.441-3T*
  - Heading: **PART 1—INCOME TAXES (Continued) > CHAPTER I—INTERNAL REVENUE SERVICE,**

