Download Fillable IRS Form 2553 | Election by A Small Business Corporation

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Fillable IRS Form 2553 | Election by A Small Business Corporation

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The purpose of IRS form 2553 is to assist small businesses in becoming an “S” Corporation so that they may reap the tax benefits that an LLC or small business cannot have otherwise. To actually qualify as an “S” corporation businesses cannot pay Federal income taxes. Instead, they must pass on their income tax to the shareholders. The form must be filed by a corporate taxpayer anytime so that they may register the business as an “S” corporation for Federal taxing purposes.

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  • Step 1 – Corporation Information

Enter corporations name and contact information at the top of the form. You must include the address of the corporation, employee identification number, then enter the date and state that the corporation was established. You would then move to Box E and fill in the tax year for which the tax year the corporation is claiming “S” tax designation. Elect in Box F the tax year you wish to be taxed on.

  • Step 2 – Shareholders

Box G must be checked if you have over 100 shareholders but will be accounting family members as one single shareholder. Carefully check the instructions to be sure you understand the definition of a shareholder.

  • Step 3 – Contacts

In boxes H and I, supply a contact if you believe a representative should be contacted with your corporation with regard to your tax status. If you’ve missed a deadline and are filing an 1120 C- Corporation form, you must provide an explanation as to why you have missed this deadline. You will be required to provide documentation that will support your claims. You must then sign and date the bottom of the 1st page of this document.

  • Step 4 – Listing Shareholders

On page 2 you will be required to list each and every shareholder. This will indicate that they approve of the designation of the “S” corporation. You must provide their information as well, to include:

  • Stock ownership
  • SS number
  • Shareholders tax year

Complete part 2 of page 2 if applicable.

Fill out part 3 on page 2 if you would also like to elect to qualify as a sub-chapter “S” Trust under 1361 D-2. Once this is all completed your form is prepared to be sent to the Internal Revenue Service for review.

  • Keep IRS instructions for Form 2553 close at hand while completing this form to ensure accuracy.
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