What is Form 2553?
Form 2553 is how a corporation or LLC elects to be taxed as an S corporation, so profits pass through to owners instead of facing corporate tax.
2553 is the election that turns a corporation or LLC into an S corp for tax purposes. Timing is strict: to take effect for the current year, you generally file within about 2 months and 15 days of the year's start. Miss it and the election usually applies to next year instead.
Who files it
Eligible small businesses that want S corporation tax treatment.
When it's due
Form 2553 is generally due ~2 months 15 days into the tax year. Deadlines can move for weekends and holidays, so confirm the exact date for the current year on IRS.gov.
Key lines and parts
Here's what you'll actually fill in on Form 2553:
- Entity information and EIN
- Effective date of election
- Shareholder consents and signatures
- Selected tax year
How to file
File within about 2 months and 15 days of the start of the tax year the election should take effect (late-election relief is often available).