What Is Form 2553?
Form 2553, also known as Election by a Small Business Corporation, is an IRS form that lets corporations and other eligible entities elect S Corporation status. This election, made under Section 1362(a), allows a business to be taxed differently. Instead of paying taxes at the corporate level, the business’s income is typically taxed to its shareholders.
When you fill out Form 2553 and submit it to the IRS, you can avoid double taxation. However, an S Corporation may still owe taxes on excess passive income, built-in gains, and other types of income. State-level franchise and pass-through entry (PTE) taxes are also levied against an S Corporation’s ordinary income.
Form 2553 remains unchanged for the 2025 tax year. It remains the same from year to year, as it was last revised in December 2017, with minor updates to the form’s instructions in December 2020.
Form 2553 vs. Form 8832
Form 2553 and Form 8832 both allow businesses to elect their entity classification:
- Form 2553: Use it to elect your business for treatment as an S corporation.
- Form 8832: Use it to elect your business for treatment as a C corporation, partnership, or disregarded entity.
Who Is Eligible to Fill Out Form 2553?
Per the IRS, your business must meet all of these requirements to be eligible to fill out Form 2553:
- It must be a domestic corporation or an eligible entity and file Form 2553 on time.
- It can have no more than 100 shareholders, with spouses and family counted as one.
- It only has shareholders who are individuals, estates, some tax-exempt organizations, or certain trusts.
- It has no nonresident aliens as shareholders (with some exceptions).
- It must have only one class of stock, meaning all shares have the same rights.
- It’s not an ineligible business, like a domestic international sales corporation.
- It must choose a tax year that ends on December 31 or fits other qualifying options.
- All its shareholders must consent to the S Corporation election.
Before filing Form 2553, make sure your business is properly structured. If you haven’t yet, file your articles of incorporation to establish your corporation. If you’re an LLC electing S Corporation status, ensure your LLC operating agreement is in place.
When to File Form 2553
You must file IRS Form 2553 within two and a half months (two months and 15 days) from the beginning of the tax year when you want the election to take effect. This deadline is crucial to ensure your business is classified as an S Corporation for the desired tax year.
There are two primary filing windows:
- No more than 2 months and 15 days after the start of the tax year: If your business’s tax year begins on January 1, the form must be filed by March 15 to take effect that year.
- Any time during the tax year before it takes effect: If you want the election to take effect in the next tax year, you can file during the previous year.
If you miss this deadline, the election may not be valid until the following tax year, which could delay your business’s S Corporation benefits.
You can also explore some special filing situations below:
| Situation | Example | Filing Window/Deadline |
|---|---|---|
| New business with no prior tax year | Business starts on March 10 | File Form 2553 between March 10 and May 25 to elect S Corporation status for that first tax year. |
| Switching from a C Corporation to an S Corporation | Tax year ends on December 31 | File any time during the prior year or up to March 15 of the current year to elect S Corporation status for the new tax year. |
| Short tax year (first year starts later in the year) | Tax year begins on October 1 | File within 2 months and 15 days of the start date (for example, by December 15). |
Do I Have to File Form 2553 Every Year?
No. Once you file Form 2553, the S corporation election remains in effect until it’s revoked or terminated.
If you decide to end your S Corporation status, you can’t re-elect it until at least five tax years have passed, unless you get approval from the IRS.
How to Fill Out Form 2553
Filing Form 2553 is the first step to electing S Corporation status for your business. Follow these Form 2553 instructions to ensure you fill it out correctly.
Part I – Election Information
Part I provides the IRS with key information about your business and the S corporation election. Begin by writing the business’s name and address. Then, complete lines A through J accordingly:
- Line A: Employer identification number (EIN).
- Line B: Date incorporated.
- Line C: State of incorporation.
- Line D: Whether your entity has changed its name or address after applying for its EIN.
- Line E: Month, day, and year of the tax year that the election is to be effective.
- Line F: Selected tax year (calendar year, fiscal year, 52-53-week year ending December or another month).
- Line G: Account for family members who are shareholders to meet the 100-maximum requirement.
- Line H: Name and title of a legal representative whom the IRS may contact.
- Line I: Reasons that the election was made late, if applicable.
-
Line J: Information of each shareholder required to consent to the election:
- Name
- Address
- Signature and date
- Stock owned
- Social Security number or EIN
- Date that the shareholder’s tax year ends
Part II – Selection of Fiscal Tax Year
You only have to fill out Part II of Form 2553 if you select the fiscal tax year or the 52-53-week year ending with reference to the month of your choice. Most filers opt for the calendar year option, so they can skip Part II.
If you’re a corporation using Part II, you must complete Item O, which specifies if your business is:
- A new corporation adopting the tax year entered in item F, Part I.
- An existing corporation retaining the tax year entered in item F, Part I.
- An existing corporation changing to the tax year entered in item F, Part I.
You may need to complete and attach Form 1128 (Application to Adopt, Change, or Retain a Tax Year) to Form 2553.
Once you complete item O, you must complete item P, Q, or R:
- Item P: Fill out item P if your corporation is using the automatic approval rules in Rev. Proc. 2006-46 to request either a natural business year or a tax year that meets the ownership tax year test.
- Item Q: Fill out item Q to request a fiscal tax year based on a business purpose.
- Item R: Fill out item R to make a section 444 election.
Part III – Make a QSST Election (if applicable)
Part III applies only if one or more shareholders are trusts. You can make a Qualified Subchapter S Trust (QSST) election to allow the trust to be treated as a valid S Corporation shareholder.
The trustee or beneficiary must sign and complete this section to make the QSST election under Section 1361(d)(2). Be sure to provide the following information in this section:
- Income beneficiary’s name and address
- Income beneficiary’s Social Security number
- Trust’s name and address
- Trust’s EIN
- Date on which the stock of the corporation was transferred to the trust
If there’s more than one QSST, attach a separate page for each trust.
Part IV – Complete Late Election Representations
You may be wondering, “Can I file Form 2553 late?” Revenue Procedure 2013-30 makes it possible to be granted S corporation status even if you missed the filing deadline.
Check the appropriate boxes confirming that the corporation intended to file as an S Corporation and has reasonable cause for the delay. You must also show that the IRS representations (labeled 1 through 5b) are true.
Form 2553 can typically be filed up to three years and 75 days after the intended effective date. When submitting your late election, include a statement explaining the delay and provide confirmation from your shareholders that they have filed their taxes as if your business was already an S Corporation for the year it should have been.
If these conditions aren’t met, you may need to request a private letter ruling from the IRS, which could involve additional fees. If you’re also filing Form 1120-S late, you can attach the late Form 2553 to it, or file Form 2553 separately.
Form 2553 Example
View a sample of Form 2553 below. Then, create your own using our fillable form. When you’re done, it’ll be ready to download in PDF format.
Where to Mail Form 2553
When you’re ready to file Form 2553, send the original form (not a photocopy) to the correct IRS address or fax it. Here’s where to send Form 2553 based on where your business is based:
| Location of Your Corporation's Principal Business | Mailing Address to Use | Fax Number to Use |
|---|---|---|
| Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin | Department of the Treasury Internal Revenue Service Kansas City, MO 64999 | 855-887-7734 |
| Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming | Department of the Treasury Internal Revenue Service Ogden, UT 84201 | 855-214-7520 |
Can I File Form 2553 Electronically?
In most cases, you cannot file Form 2553 electronically. It must be mailed or faxed to the IRS.
However, there is one exception. If you’re filing a late S corporation election and qualify for late relief, you can attach a signed copy of Form 2553 as a PDF to your electronically filed Form 1120-S (US Income Tax Return for an S Corporation).
What Happens After You File Form 2553
Once you file Form 2553, the IRS will notify you if your election is accepted and when it takes effect, usually within 60 days. If you checked Box Q1 in Part II, expect an additional 90 days for approval.
If you don’t hear back within 2 months (or 5 months with Box Q1), call 1-800-829-4933 to follow up.
How to Prove Your Filing
If the IRS questions your filing, proof can include:
- A certified or registered mail receipt (timely postmarked)
- Form 2553 with an acceptance stamp
- An IRS letter confirming receipt
Once your S Corporation status is elected with Form 2553, you’ll need to file Form 1120-S annually to report your corporation’s income, deductions, and credits. This form also includes Schedule K-1, which provides information on each shareholder’s share of the corporation’s income.
