### Question
How is the term personal service corporation defined?


### Answer
The term **personal service corporation** is defined in *26 CFR § 1.441-3T* as the following:

> 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) > SUBCHAPTER A—INCOME TAX (Continued)**

