Form 2553

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. Any type of company or sole proprietor can elect S Corp status. This means that a corporation, limited liability company, limited partnership, partnership or sole proprietor are each eligible to be taxed as an S Corp. In that sense, there is no such thing as forming an S Corporation, because any entity can be taxed in that manner. Therefore, it is important to keep in mind that such a tax election is a wholly separate step from the process of incorporating, which is the word used to mean the formation of a company. When filing form 2553, it is important to ensure that it is filed within certain timeframes, and it is up to the discretion of the IRS to accept the election as being valid. If a company fails to make the filing within those time frames, then it may attempt to make a late filing, but if it does so, then it must be careful to abide by the S Corp late filing requirements. Once a company has successfully completed its S Corp tax election, then it must be careful to continue complying with all of the S Corp requirements.