Instructions for Form 2553
By filing Form 2553 you are changing the default tax classification of the LLC to S-Corporation. Besides filing Form 2553, you also need to take payroll, file payroll tax returns, file a corporate return for your S-Corporation (Form 1120S), and manage your books.
The authors recommend Form 2553 be filed by the earlier of 75 days or two months and 15 days after the date the S election is to become effective. In this way, Form 2553 will be filed within both the Form 8832 and Form 2553 filing limits.
Form 2553 can only be mailed or faxed to the IRS.
The second section of Form 2553 requires a business to provide information detailing its tax year if it does not operate on the calendar year. The business will need to justify its tax year as part of the submission.
Guide for Starting an S Corporation
In our guide, we’ll walk you through form 2553 instructions so you can legally and officially start your new S corporation in the U.S.
Is Form 2553 Mandatory?
By filing Form 2553, you change the tax classification. Besides filing, you need payroll, tax returns, corporate return (Form 1120S), and manage books.
Recommend filing earlier – within 75 days or 2 months and 15 days after effective date. This meets both filing limits.
Justification needed for non-calendar tax year.