Filing Form 2553
Do I need to file both Form 8832 and Form 2553? No. Instead, a single election can be made on Form 2553. Form 8832 is used by an eligible entity to elect how it will be classified for federal tax purposes.
- Once your business completes the S corporation application, you’ll have to file Form 2553 with the IRS within two months after the start of your fiscal year or within the first 75 days if newly formed.
- Consult a knowledgeable business attorney for deciding which entity and tax election status to use.
How often do I need to file Form 2553?
- Once filed and approved by the IRS, the S corporation election remains valid, so the business owner does not have to file Form 2553 every year.
Can a single member LLC file Form 2553? Yes, a single-member LLC can become an S corporation by filing Form 2553 no later than two months and 15 days from the start of the tax year in which S corporation status will be effective.
Late Election and Requirements
If your LLC has passed the deadline of 75 days, you must file Form 8832, Entity Classification Election, with Form 2553 to opt to be taxed as a corporation. In Wyoming, send your Form 2553 to the Ogden, UT IRS Center.
An entity must meet requirements to file Form 2553:
- It is a domestic corporation or entity eligible to elect treatment as a corporation.
- Timely files Form 2553 and meets other tests.
- It has no more than 100 shareholders.
For late election relief, see "Relief for Late Elections."
Form Instructions and Eligibility
Form 8832 Instructions and form can be found on the IRS website. Information needed includes:
- Business name, address, phone number, owner’s name, and SSN.
- Most LLCs file Form 8832 to be effective their first tax year, between one year prior and 75 days after beginning business.
HR&Block can assist with accurate and timely Form 8832 completion.