In order for the trust named above to be a qsst and thus a qualifying shareholder of the s corporation for which this form 2553 is filed, i hereby make the election under section 61d2. Form 2553 how to fill it out, where to file, and faqs. You can then apply for s corporation status by filing form 2553. If your llc is taxed as an scorp and youd like to cancel this election with the irs, this is known as a voluntary revocation of scorporation status essentially undoing the filing of form 2553. An s corporation is formed only when a regular corporation elects a special smallbusiness tax status with the irs.
Corporations that do not make this election are subject to income tax at both the. When you elect scorporation taxation by filing form 2553, the election takes effect on january 1 of the following year, with a few exceptions. Edit, fill, sign, download form 2553 rev december 2007 online on. Cbt2553 new jersey s corporation or new jersey qsss. Owners may be individuals, certain trusts, and estates.
This election to be an s corporation can be accepted only if. Therefore, you can make an s election by filing form 2553 without also filing form 8832. The irs agent either can mail or fax you a copy of your s. Download form 2553, election by a small business corporation, from the irs website, along with instructions. I started my business in august 2009 and filed form 2553 for scorp election and i made a mistake. Part 1 of form 2553 includes the election information. This allows your business to save money by qualifying for pass. Form 2553 must be filed by the 15th day of the third. Irs form 2553, election by a small business corporation, is required to be filed with the irs to switch a c corporation to s corporation status for purposes of. Form 2553 election by a small business corporation under. Instructions for form 2553, election by a small business corporation. S corporation tax election with form 2553 reduce the tax you pay by having your llc treated as an s corp for tax purposes.
Form 2553 is a federal form related to federal income tax and s corporation status, so there are not different requirements between states for form 2553 aside from the address or fax. Form 2553 election by a small business corporation support. Entering information for form 2553 for a new s corporation. All changes can be filed with the s corporation final return. This information is the name, address and employer identification number of the company. Fillable form 2553 election by a small business corporation. How to request an scorporation acceptance letter from the irs. S corporations are becoming very popular for small business owners with adequate net income, but s corporations are also the least understood and people. Llc revoking scorporation election with the irs llc. You will then receive a notice from the irs within 60 days of filing advising whether or not your request is approved. This is done by filing an s election, form 2553, with the irs within a few months of the corporation s formation. The form 1120s income tax return is due march 15, 2016 under the tax code, every u.
After the irs agent verifies your authorization, explain that you need a copy of your scorporation election documents. Use form 2553 election by a small business corporation to apply for s corporation status. Form 2553 is the scorporation election form that a startup company must file with the internal revenue service in order to elect pass through taxation. The company must also decide the effective date of. An entity that makes the deemed election to be taxed as a corporation by filing the s election, form 2553, will be classfied as a corporation on the date the s election is effective and will continue to be treated. Upon setting up its corporate structure, the company must submit a completed form 2553, election by a small business corporation, to the internal revenue. If the entity is not recognized in the irs database as a subchapter s corporation, you can mail. Form 2553 is the form that must be completed and filed with the irs for a company or sole proprietor to elect to be treated as an s corporation under the internal revenue code.
How to obtain a copy of a filed sub s corp election. Use the following steps to enter shareholder information for form 2553, election by a small business corporation. The purpose of form 2553 is to allow small businesses to register as an s corporation instead of as a c corporation. Halon tax and the small business university present s corp form 2553 election. Partnerships, corporations or nonresident alien shareholders are not eligible. The form 2553, electing subs election can be faxed to irs for approval. Does llc have to file form 8832 and 2553 or just one.
As such, if an llc files a form 2553, a form 8832 is not required. Please contact a specialist to help you with your s corporation preparation. Form 2553 is filed by any corporation or other entity eligible to elect to be treated as a corporation to make an election to be an s corporation. A corporation or other entity eligible to be treated as a corporation files this form to make an election under section 62a to be an s corporation. You can fill out the pdf template on your computer or print and fill it out by hand. The income of an s corporation generally is taxed to the shareholders of the corporation instead of to the corporation itself. However, an s corporation may still owe tax on certain income. In order to qualify for the s corp election there are a few requirements. To request relief from a late filing for reasonable cause, complete the narrative section at the bottom of page 1, explaining why you are filing. You can fill out the pdf template on your computer or print and fill it out by. Have your llc taxed as an s corp s corp election form 2553. You can have your llc taxed as a c corporation by filing form 8832. Form 2553 allows a small business to register as an s corp. Click on the product number in each row to view download.
If so, you can choose s corporation status for tax purposes by filing irs form 2553 within 75 days of the filing date of the company or by filing irs form 2553 by march 15 of the tax year the election is to take. Election by a small business corporation 2553 form omb no. All s corporations start out as regular corporations. Purpose a corporation must file form cbt2553 to elect to be treated as a new jersey s corporation or a new jersey qsss or to report a change in shareholders. How to obtain a copy of filed subchapter scorp election. Irs 2553 2017 fill out tax template online us legal forms. Choose file open client to open the desired s corporation client. Only a corporation or llc can elect s corp status with the irs by filing form 2553. Form 2553 irs should be duly filled by the third month of the new corporations taxation year, by the 16 th of that month. For more information refer to the frequently asked questions related to llcs. Check the appropriate box to indicate if this is an initial s corporation election or a change in s or qsss corporation shareholders or a new jersey. Form 2553 is used by qualifying small business corporations and limited liability companies to make the election prescribed by sec. You can have your llc taxed as an s corporation by filing form 2553 which well discuss in this lesson.
Irs instruction 2553 2017 fill out tax template online. Check the appropriate box to indicate if this is an initial s corporation election or a change in s or qsss corporation shareholders or a new jersey qsss election. Yes, you have to file irs form 1120s even if you had no income or expenses. Electing s corporation status for a limited liability company. If the business filed form 2553 election by a small business corporation, the business would have to revoke or terminate this election for it to no longer be effective once the irs approves the. December 2007 see parts ii and iii on page 3 and the separate. Cbt2553 new jersey s corporation or new jersey qsss election. A corporation or other entity eligible to be treated as a corporation. Businesses can file irs form 2553, election by a small business corporation and elect to form an s corporation instead of a c corporation. Additionally, the instructions below are for an llc electing to be taxed as an scorp not a corporation electing to be taxed as an scorp. If you formed a c corporation, but failed to file form 2553 in a timely manner, there might be relief available to you for the late filing election. S corporation election irs form 2553 companies inc. Moreover, if you elect to be taxed as a corporation on form 8832, you are electing to be taxed as a c.
The corporation should verify that it s eligibility for s corporation status was met and file form 2553 with the internal revenue service. You can have your llc taxed as a ccorporation by filing form 8832. Irs form 2553 election by a small business corporation is required to be filled out by corporations who elect to be taxed as an scorporation. If you do not file this form, the corporation will receive an approval of the s corporation election. A corporation or other entity eligible to be treated as a corporation files this form to make an election under section 62a to be an s. If the corporation s principal business, office, or agency is located in. If the corporations principal business, office, or agency is located in. Form 2553 rev december 2007 edit, fill, sign online. To be an s corporation beginning with its first tax year, the corporation must file form 2553 during the period that begins january 7 and ends march 21.
Purpose a corporation must file form cbt 2553 to elect to be treated as a new jersey s corporation or a new jersey qsss or to report a change in shareholders. Tips for filing form 2553, election by a small business. You will then receive a notice from the irs within 60 days of filing advising whether or not your. About form 2553, election by a small business corporation. Where it asked for the beginning, i mistakingly put the year end date. You can have your llc taxed as an scorporation by filing form 2553 which well discuss in this lesson. In addition to internal revenue service form 2553 which serves to elect scorporation tax status an organization should also be aware of scorporation specific documents. Form 2553 election by a small business corporation 2014.