Form 2553: electing S corporation status

The S corporation election is made on a short form, but mistakes on it are expensive: a missing signature or a late filing can mean a year taxed the wrong way. This guide walks through who can file, what each part asks for, and how to confirm the IRS has accepted it.

By Mirza Fahad Baig, Chartered Accountant. Reviewed by Muhammad Bilal, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

Form 2553 is how a corporation or LLC elects to be taxed as an S corporation. Every shareholder signs a consent. To take effect for a tax year, it must generally be filed within 2 months and 15 days of the year starting, or during the previous year. For a calendar-year business starting S status in 2027, that means by March 15, 2027.

At a glance

Who can file
Eligible domestic corporations and LLCs
Deadline
2 months and 15 days after the tax year begins
For calendar year 2027
By March 15, 2027
Signatures
Every shareholder consents
LLCs
Need not file Form 8832 first
Missed the deadline
Late election relief may be available on the form itself
Form 2553: electing S corporation statusWho can file: Eligible domestic corporations and LLCs; Deadline: 2 months and 15 days after the tax year begins; For calendar year 2027: By March 15, 2027; Signatures: Every shareholder consents; LLCs: Need not file Form 8832 first; Missed the deadline: Late election relief may be available on the form itself.KEY FACTS AT A GLANCEForm 2553: electing S corporation statusWho can fileEligible domesticcorporations and LLCsDeadline2 months and 15 daysafter the tax year beginsFor calendar year 2027By March 15, 2027SignaturesEvery shareholderconsentsLLCsNeed not file Form 8832firstMissed the deadlineLate election relief maybe available on the formitselfChecked against official sourcesTax BakersForm 2553: electing S corporation statusWho can file: Eligible domestic corporations and LLCs; Deadline: 2 months and 15 days after the tax year begins; For calendar year 2027: By March 15, 2027; Signatures: Every shareholder consents; LLCs: Need not file Form 8832 first; Missed the deadline: Late election relief may be available on the form itself.KEY FACTS AT A GLANCEForm 2553: electing S corporationstatusWho can fileEligible domestic corporations and LLCsDeadline2 months and 15 days after the tax yearbeginsFor calendar year 2027By March 15, 2027SignaturesEvery shareholder consentsLLCsNeed not file Form 8832 firstMissed the deadlineLate election relief may be available on theform itselfChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

Who can make the election?

A domestic corporation, or an LLC eligible to be treated as one, that meets the S corporation rules:

  • no more than 100 shareholders,
  • shareholders who are individuals who are US citizens or residents, certain trusts or estates, or certain exempt organizations, and no nonresident aliens, partnerships or corporations,
  • only one class of stock.

Foreign owners are covered in can a non-resident own an S corporation.

Whether the election saves money is a separate question. See when an S corp election saves tax.

When must it be filed?

To take effect from the start of a tax year, file Form 2553 no more than 2 months and 15 days after that year begins, or at any time during the preceding tax year. For a calendar-year business that wants S status from January 1, 2027, the window runs from any time in 2026 to March 15, 2027.

A newly formed company's first tax year begins when it first has shareholders, acquires assets or begins doing business, whichever is first. Its 2 months and 15 days run from that date.

What does each part ask for?

PartWhat it covers
Part IThe company's name, EIN, date and state of incorporation, the date the election is to take effect, the tax year, officer details, and each shareholder's name, address, ownership, taxpayer number and signed consent
Part IIOnly if the company wants a fiscal year rather than the calendar year
Part IIIOnly for qualified subchapter S trust elections
Part IVOnly for certain late qualified subchapter S trust elections

Most small businesses complete Part I only and choose the calendar year.

Who has to sign?

An authorized officer signs for the company. Every shareholder at the time of the election signs a consent in the shareholder columns, or on a separate attached statement. In community property states, a spouse who has a community interest in the shares also consents. A missing consent is one of the most common reasons an election is rejected.

What about LLCs?

An eligible LLC that files a timely Form 2553 is treated as having elected to be a corporation as well, so it does not need to file Form 8832 first. It stays an LLC under state law. See how LLCs are taxed.

An LLC that wants C corporation treatment instead files Form 8832.

Where is it sent?

Form 2553 is mailed or faxed to the IRS office listed in the instructions for the state where the company's principal business is located. Keep proof of the date you sent it, such as a fax confirmation or certified mail receipt.

How do you know it was accepted?

The IRS sends an acceptance notice, CP261, confirming the election and its effective date. Keep it with the company's permanent records. If no response arrives within about two months of filing, contact the IRS to check. The company must not file Form 1120-S until the election is accepted.

What if you missed the deadline?

The IRS offers simplified relief for late elections when the company intended to be an S corporation from the requested date, failed to qualify only because the form was late, and has reasonable cause. The request is made on Form 2553 itself, with an explanation of the reason, within the time limits set by the IRS procedure. Outside that procedure, relief requires a private letter ruling, which is costly.

The step-by-step relief process is in late S corp election relief.

What happens after acceptance?

  • Set up payroll for shareholder-employees before the first distribution.
  • File Form 1120-S each year by March 15.
  • Keep distributions proportionate to ownership.

Want your S election filed correctly?

We check eligibility, prepare Form 2553 with every consent, file it, and follow up until the IRS confirms acceptance. We also handle late election relief.

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Questions people ask

What is the deadline for Form 2553?

2 months and 15 days after the start of the tax year the election is for, or any time in the preceding year. For calendar year 2027, March 15, 2027.

Does every shareholder have to sign Form 2553?

Yes. Every shareholder at the time of the election consents, and in community property states, spouses with a community interest do too.

Does an LLC need Form 8832 before Form 2553?

No. A timely Form 2553 from an eligible LLC also treats it as electing to be a corporation.

How do I know my S election was accepted?

The IRS sends notice CP261 confirming acceptance and the effective date.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. IRS: Instructions for Form 2553
  2. IRS Revenue Procedure 2013-30: relief for late elections
  3. IRS: Instructions for Form 1120-S (2025)
  4. Internal Revenue Code section 1361: S corporation eligibility
  5. Internal Revenue Code section 1362: election and consents

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Federal tax formsForm 1120-S: the S corporation returnBusiness tax by entity typeS corp election: when it saves tax and when it doesn'tBusiness tax by entity typeHow LLCs are taxed: the four options

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This guide is general information. It is not tax or legal advice for your situation.