Making the S Election - How to Fill Out IRS Form 2553

Introduction

Ready to unlock the benefits of an S corporation? Filing IRS Form 2553 is your first step toward making it official. This form is how you elect S corp status, allowing your business to enjoy pass-through taxation & implement other S corp strategies. But like any IRS form, it comes with rules, deadlines, and potential pitfalls. Don’t worry—we’ll break it down together. In this guide, we’ll walk you through each section of Form 2553, highlight common mistakes to avoid, and set you up for a smooth filing process. (Note: This is a general overview, not tax advice. For guidance tailored to your situation, consult your tax advisor.) Let’s dive in!

What Is Form 2553 and Why Do You Need It?

Form 2553 is the IRS document that lets your corporation elect S corporation status for federal tax purposes. By filing it, you’re choosing to have your business’s income, deductions, and losses pass through to shareholders’ personal tax returns—a tax advantage that can save you money. However, timing is critical: you must file within 2 months and 15 days of your corporation’s incorporation or the start of the tax year you want the election to take effect. Miss that deadline, and you’ll need to qualify for late election relief (we'll explore late elections in another post), which isn’t always approved. Plus, every shareholder must consent to the election. In short, Form 2553 is your key to S corp benefits—filing it correctly and on time is essential.

Before You Start: What You’ll Need

Before tackling Form 2553, gather these details to keep the process smooth:

• Your corporation’s legal name, mailing address, and Employer Identification Number (EIN).

• The date and state of incorporation. A copy of your Articles of Incorporation (or Articles of Organization for LLCs) would have this information if you don't know it.

• Names, addresses, and Social Security Numbers (SSNs) of all shareholders or LLC members.

• The number of shares each shareholder owns (or percentage interest for LLC members) and the dates they acquired them.

  
  

Having this information ready will save time and reduce errors. If anything’s missing, track it down now—accuracy here sets the stage for success.

Step-by-Step Guide to Filling Out Form 2553

Let’s break down Form 2553 section by section. Follow along, and you’ll have it done in no time.

General Information

This section covers the basics of your corporation.

• Boxes A–C: Enter your corporation’s legal name, mailing address, and EIN. The date incorporated in box B and state of incorporation in box C should match the articles filed with your state.

  • Tip: Double-check your EIN—an incorrect number is a common rejection reason.

• Box D: Leave this blank unless your corporate name or address has changed since you applied for your EIN.

• Box D: Select your tax year. Most S corps use the calendar year (January 1–December 31). Considering a fiscal year? Talk to your advisor—it may need extra justification.

• Pro Tip: Review all entries for typos—small errors can lead to big delays.

IRS Form 2553 - General Information

Selection of Fiscal Tax Year

• Box E: If you're making the S election for your corporation's first year in existence, you should generally enter the date incorporated here. Otherwise, enter the first date of the tax year for which you're making the election. If you're filing timely and on a calendar year, this is January 1st of the current year. We'll cover late elections and fiscal years in more detail in future posts.

• Box F: Most corporations select a calendar year. S corporations can choose a fiscal year if there is a business purpose for doing so. A fiscal year can provide opportunities for tax planning & deferral of taxes. However, these are not "business purposes." We'll cover this in more detail below. For now, if you're considering a fiscal year, talk to a tax advisor before submitting your 2553.

  
  

IRS Form 2553 - Tax Year Selection

Other Information

• Box G: Generally, corporations with more than 100 shareholders are ineligible to elect to be an S corporation. For purposes of this test, you can treat an individual and his or her spouse (or their estates) as one shareholder. You may also treat all members of a family as one shareholder. There are strict definitions of family members in the Internal Revenue Code, so check with a tax advisor before checking this box. For corporations with fewer than 100 shareholders, leave this blank.

• Box H: A corporate officer who is familiar with the other information on the Form 2553 should be named here, along with their title and phone number.

• Box I: When filing late, you must provide an explanation of the reasons the election was not made on time. You must also agree to the representations listed in Part IV of the form. We'll cover late elections in another post. If you're filing on time, you can leave this part blank.

• Signature: A corporate officer must sign the 2553. The signature must be dated on or before the due date of the election unless a late election is being made.

IRS Form 2553 - Other Information

Page 2: Shareholder Consent Statement

• Requirement: All shareholders must sign and date this part, agreeing to the S election and the statement above Column K. Include their names, addresses, SSNs, number of shares owned (or percentage ownership for LLCs) and dates the shares were acquired. List the shareholders in Column J and fill out the required information in Columns L, M, and N. Each shareholder will need to sign next to their name in Column K.

  • Pitfall: If an individual and his or her spouse have a community interest in the stock or in the income from it, both must give their consent in this section.

• Tip: You may use a continuation sheet or separate statement if there is not enough space on the form or to facilitate gathering signatures.

IRS Form 2553 Page 2 - Don't forget to add the corporation's name and EIN at the top

Page 3 (Part II): Selection of Fiscal Year

If you selected option (2) or (4) in box F on page 1, you must complete Item O and one of items P, Q, or R on this page. Otherwise, you can leave this blank.

The items in this section allow you to establish your business purpose for selecting a fiscal year. This gets a little bit complicated, and we'll cover it in more detail in another post. For now, if you'd like to select a fiscal year, talk to your tax advisor about what might be required.

Page 4 (Part III): Qualified Subchapter S Trust Election

A Qualified Subchapter S Trust (QSST) is a special trust allowed to own S corporation stock, ensuring the corporation keeps its pass-through tax status. It’s mainly used for estate planning, letting owners transfer stock to family—like a child—without losing S corp benefits. To qualify, it must be a grantor trust (taxed to the creator), have one US income beneficiary, distribute all income yearly to them, and give them the stock when the trust ends.

This doesn't apply to most S corporations, and if you don't have a QSST shareholder you can leave this blank.

IRS Form 2553 - QSST Election

How to File

Now that you've carefully filled out your Form 2553 and gathered signatures from all the shareholders and the corporate officer, you're ready to file.

You may file Form 2553 either by mail or fax. We recommend using Certified Mail for anything sent to the IRS. In our CPA practice, we've had the best luck submitting these by fax. As of today, the filing addresses and fax numbers for filing Form 2553 are below. These are subject to change, so be sure to check the IRS website before you submit your form.

If your corporation's principal office is located in...	Then use this address or fax number to file your Form 2553
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 Fax: 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 Fax: 855-214-7520

After You File: What to Expect

Once you submit Form 2553, the IRS typically processes it within 60 days. If approved, you’ll get a confirmation letter—keep it safe as proof of your S corp status. No response after 60 days? Contact the IRS to follow up. If rejected, they’ll explain why, giving you a chance to fix and resubmit. For late filings, confirm your relief was accepted—otherwise, your S status might kick in next tax year.

Conclusion

Form 2553 is your ticket to S corporation status, and with this guide, you’re ready to tackle it with confidence. Gather your info, follow the steps, and dodge the common errors we’ve covered. Precision is key—check your work, get all signatures, and file on time. Feeling unsure? Your tax advisor can step in. For more S corp tips, keep exploring ScorpStrategies.com.

Note: The content presented here is for informational purposes only and is not intended to be tax advice. You should not rely solely on this information when making decisions about your business or filling out tax forms. Consult a tax advisor for information specific to your needs.