Form 2553
Election by a Small Business Corporation
Elect S corporation status for a corporation or LLC, so business income is passed through to the owners and not taxed at the entity level.
Editing happens entirely in your browser — the form is never uploaded to a server.
What is Form 2553?
Form 2553 is how an eligible domestic corporation — or an LLC that has elected to be taxed as a corporation — chooses to be an S corporation. An S corporation generally pays no federal income tax itself; profits and losses flow through to the shareholders, who report them on their personal returns. Owners who work in the business take a reasonable salary (subject to payroll tax) and can take remaining profit as distributions that aren't subject to self-employment tax, which is the main reason small businesses make the election.
To qualify, the entity must be domestic, have only allowable shareholders (individuals, certain trusts and estates — no partnerships or corporations), have no more than 100 shareholders, have only one class of stock, and not be an ineligible type of business. Every shareholder must consent to the election by signing.
- Who needs it
- Small corporations and LLCs (taxed as corporations) whose owners want pass-through taxation and the potential payroll-tax savings of the salary-plus-distributions structure, and who meet all the S corporation eligibility rules.
- Deadline
- For the election to take effect for a tax year, file no later than two months and 15 days after the start of that year, or at any time in the preceding year. The form has a dedicated section for requesting late-election relief with an explanation of reasonable cause, which the IRS often grants.
- How to submit
- Fax or mail Form 2553 to the IRS service center for your state listed in the instructions. It is not filed with your tax return. The IRS sends a notice (CP261) confirming the election was accepted, usually within about 60 days.
Form 2553 — line-by-line
Part I — Election information
The corporation's name, address, EIN, state and date of incorporation, the effective date of the election, and the tax year it will use.
Item E — Effective date
The date you want S corporation status to begin. It can't be earlier than the entity's formation or the start of the current allowable window.
Item F — Selected tax year
Calendar year, a 52-53 week year, or a fiscal year (a fiscal year usually requires a business-purpose explanation or a Section 444 election on Form 8716).
Shareholders' consent
Each shareholder's name, address, SSN or EIN, number of shares or percentage owned, the acquisition date, and their signature consenting to the election.
Late election relief
If filing after the deadline, state the reason the election is late and explain the reasonable cause; an officer signs under penalties of perjury.
Parts II–IV
Complete only if you selected a fiscal year (Part II), are a qualified subchapter S trust (Part III), or are making a late election as described in the relevant IRS revenue procedure (Part IV).
Form 2553 — frequently asked questions
Can an LLC file Form 2553?+
Yes. An LLC can elect S corporation taxation by filing Form 2553; the IRS treats the filing as also making the underlying election to be taxed as a corporation (Form 8832), so a separate 8832 usually isn't needed.
What if I miss the deadline?+
Use the late-election relief section. If you had reasonable cause and have otherwise acted as an S corporation, the IRS commonly grants relief for elections filed within about 3 years and 75 days of the intended effective date.
Does an S corporation pay any federal tax?+
Generally no federal income tax at the entity level, though it may owe tax on certain built-in gains or excess passive income. It still files an informational return (Form 1120-S) and issues Schedule K-1s to shareholders.
Do all owners have to agree?+
Yes. Every shareholder on the effective date (and, for some retroactive elections, everyone who held shares during the year) must consent in writing by signing the form.
Related forms
The blank Form 2553 offered here is the version published by the Internal Revenue Service (IRS). Official page and instructions .
PDFCure is not a government agency and does not provide tax, legal, or immigration advice. This page is general information — for your specific situation, follow the official instructions or consult a qualified professional. Always download the current edition from the agency before filing. Revision referenced: December 2020.