S-Corp Election: IRS Form 2553 Deadlines and Requirements
Considering S-Corp tax treatment? Here's a general overview of Form 2553, its deadlines, and eligibility rules.
What Form 2553 does
IRS Form 2553 is the form an eligible LLC or corporation files to elect to be taxed as an S-Corporation instead of its default tax treatment. It's filed with the IRS, not your state.
General eligibility requirements
To qualify, a business generally must be a domestic entity, have no more than 100 shareholders, have only eligible shareholders (generally individuals, not other corporations or partnerships), and have only one class of stock.
Deadline basics
Generally, Form 2553 needs to be filed within two months and 15 days of the start of the tax year the election is meant to take effect, though late-election relief is sometimes available for reasonable-cause situations. Deadlines and relief provisions can change, so confirm current rules.
What happens after you file
Once accepted, the business generally must run payroll for owner-employees performing services, pay a 'reasonable salary,' and follow additional filing requirements compared to default LLC taxation.
This is a filing that benefits from professional review
Because eligibility rules and deadlines are specific and the consequences of getting it wrong (like an invalid election) can be costly, most businesses have an accountant or tax professional prepare and review Form 2553 before filing.
Frequently asked
Can I revoke an S-Corp election later?
Does every LLC qualify for S-Corp election?
Recommended resources
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🧾 S-Corp Tax Election Guide Book
A reference book walking through S-Corp election basics and IRS Form 2553 timing.
Amazon →📗 Small Business Tax Deductions Guide
A general guide to small-business tax deductions and recordkeeping.
Amazon →📘 LLC vs S-Corp Reference Guide
A plain-English comparison book for founders weighing S-Corp treatment.
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