What is the purpose of form 2553?
Emma Jordan
Published Mar 03, 2026
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 federal taxation. To understand how much you could save in taxes by forming an S Corporation, check out our S Corporation Tax Calculator.
What happens after you file Form 2553?
The corporation (entity) should generally receive a determination on its election within 60 days after it has filed Form 2553. If box Q1 in Part II is checked, the corporation (entity) will receive a ruling letter from the IRS that either approves or denies the selected tax year.
How do I convert to an S-Corp?
To elect for S-Corp treatment, file Form 2553. You can make this election at the same time you file your taxes by filing Form 1120S, attaching Form 2533 and submitting along with your personal tax return.
How do I convert an LLC to an S-Corp?
You can change your limited liability company (LLC) to an S corporation (S corp) by filing Form 2553 with the Internal Revenue Service (IRS)….IRS Form 2553 Instructions
- Check S Corp Eligibility.
- Check Form 2553 Due Dates.
- Complete and File Form 2553.
When do S corporations have to file Form 2553?
The 2-month period ends March 6 and 15 days after that is March 21. 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. Because the corporation had no prior tax year, an election made before January 7 won’t be valid.
What happens if you fail to file IRS Form 2553?
In addition, the corporation can only have failed to qualify as an S corporation because it did not file Form 2553 in a timely manner, and not for any other reason. It must have reasonable cause for missing the deadline, but the IRS is pretty generous in this regard. Inadvertently failing to file Form 2553 is considered reasonable cause.
Can a Form 2553 be attached to Form 1120?
The election can be attached to the first Form 1120-S for the year including the effective date if filed simultaneously with any other delinquent Forms 1120-S. Form 2553 can also be filed separately.
When to use IRS Form 8832 for S corporation?
IRS Form 8832 is used by business entities other than corporations that elect to be classified as S corporations for federal tax purposes. A common example is a single-member limited liability company. Ordinarily, this type of company would be treated as a disregarded entity.
