### Question
How does PART 1—INCOME TAXES define personal service corporation?


### Answer
Under *26 CFR § 1.441-3T*, **personal service corporation** is defined as:

> 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 > CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY(CONTINUED)**

