IRS Form 2553: How to Elect S Corp Status (Deadline + Instructions)
⏳ Timing matters: to have S corp status apply for the current tax year, a calendar-year business must file Form 2553 by 15 March — within 2 months and 15 days of the year starting. Miss it and you may still qualify for late relief (below).
- Form 2553 is how a corporation or LLC elects to be taxed as an S corporation with the IRS.
- The deadline is 2 months and 15 days after the start of the tax year — 15 March for a calendar-year business.
- Miss it? Late election relief is available under Rev. Proc. 2013-30 if less than 3 years and 75 days have passed and you have reasonable cause.
- To qualify you need 100 or fewer shareholders, one class of stock, and only eligible (mostly US-resident individual) shareholders.
- All shareholders must sign and consent to the election.
- Want it filed correctly the first time? Our US tax service handles the whole election.
Electing S corporation status can save a profitable business thousands in self-employment tax — but only if you file the paperwork correctly and on time. That paperwork is IRS Form 2553. This guide explains what the form does, the deadline you can't afford to miss, what to do if you've already missed it, who qualifies, and how to complete and file it.
What is IRS Form 2553?
Form 2553, Election by a Small Business Corporation, is the form a business files to elect S corporation tax treatment under Section 1362(a) of the tax code. It doesn't create a company — you must already have a corporation or LLC — it changes how that entity is taxed.
By default, a corporation is taxed as a C corporation and an LLC is taxed as a sole proprietorship or partnership. Filing Form 2553 tells the IRS to treat the business as an S corporation instead — a pass-through structure where profits flow to the owners' personal returns, avoiding the double taxation of a C corp while opening up self-employment tax savings.
What is the deadline to file Form 2553?
You must file Form 2553 no more than 2 months and 15 days after the beginning of the tax year the election is to take effect — or at any time during the preceding tax year. For a calendar-year business, that 2-month-and-15-day window ends on 15 March.
| You want S corp status effective… | File Form 2553 by |
|---|---|
| 1 January this tax year (calendar-year) | 15 March this year |
| A newly formed entity's first year | 2 months + 15 days from the date it started |
A newly formed business measures the window from the date it first had shareholders, acquired assets, or began doing business — whichever came first. Miss the deadline and, without relief, your S corp election simply won't take effect until the following tax year.
Can you file Form 2553 late?
Yes — the IRS offers late election relief under Rev. Proc. 2013-30, and it's widely used. You can still get S corp status backdated to your intended effective date if all of these apply:
- Less than 3 years and 75 days have passed since the intended effective date
- You intended to be an S corp from that date and failed to qualify only because the election was late
- You have reasonable cause for filing late
- You and all shareholders reported income consistently with S corp status for the years involved
To claim it, you file the same Form 2553, write "FILED PURSUANT TO REV. PROC. 2013-30" across the top, and attach a statement explaining your reasonable cause. Many businesses that only realised the benefit after year-end use this route to elect retroactively.
Who is eligible to elect S corp status?
Not every business can be an S corporation. To qualify, your company must meet all of the following:
- Be a domestic corporation or eligible LLC
- Have no more than 100 shareholders
- Have only allowable shareholders — individuals, certain trusts and estates; not partnerships, corporations or non-resident aliens
- Have only one class of stock
- Not be an ineligible corporation (such as certain financial institutions or insurance companies)
The non-resident alien rule catches out many foreign founders — if a shareholder isn't a US resident, the company generally can't be an S corp. If that's you, a C corp or LLC structure may fit better; our guide to S corp vs C corp covers the trade-offs.
How do you complete and file Form 2553?
The form is four parts, though most small businesses only need the first. Here's the process:
If you're an LLC, filing Form 2553 also elects to have your LLC treated as a corporation for tax purposes, so in most cases you don't need to file Form 8832 separately. Keep a copy of the filed form and the IRS approval — banks and future accountants will ask for it.
Why elect S corp status?
The headline reason is self-employment tax savings. As a sole proprietor or partner, all your profit is subject to 15.3% self-employment tax. As an S corp owner, you pay yourself a reasonable salary (subject to payroll taxes) and take the rest as distributions, which are not subject to self-employment tax.
The savings only outweigh the added payroll and filing costs once profits reach a certain level — often around the mid-five-figures and up. Our S-corp tax calculator estimates your potential saving, and our US tax service can tell you whether an election makes sense before you file.
Frequently asked questions
What is Form 2553 used for?
It's the IRS form a corporation or LLC files to elect to be taxed as an S corporation. It changes how an existing entity is taxed — to a pass-through structure with potential self-employment tax savings — rather than creating a new company.
What is the deadline for Form 2553?
No more than 2 months and 15 days after the start of the tax year the election is to take effect, which is 15 March for a calendar-year business. You can also file any time in the preceding tax year.
Can I still file Form 2553 after the deadline?
Yes, using late election relief under Rev. Proc. 2013-30, provided less than 3 years and 75 days have passed since the intended effective date, you have reasonable cause, and you've reported consistently as an S corp. Write "FILED PURSUANT TO REV. PROC. 2013-30" on the form.
Can an LLC file Form 2553?
Yes. An eligible LLC can elect S corporation status by filing Form 2553. Doing so also elects for the LLC to be treated as a corporation for tax purposes, so you usually don't need to file Form 8832 separately.
How long does IRS approval take?
The IRS generally processes Form 2553 within about 60 days and sends a CP261 notice confirming the S corporation election. Keep that notice — it's your proof of S corp status.
We'll check whether an S corp saves you money, complete and file Form 2553 correctly — including late relief if you've missed the deadline — and handle the payroll it requires. Get a quote or message us today.
Related: our S-corp tax calculator, US tax filing service, and guide to S corp vs C corp. Official guidance is on the IRS Form 2553 page.