Quick answer: Form 2553 is the IRS form that makes your LLC or corporation an S corp for tax purposes. It is due within 2 months and 15 days of the start of the tax year you want it to apply, which is March 15 for most existing businesses. Missed it? Late relief under Rev. Proc. 2013-30 often fixes it at no IRS fee.
It is a short form, but it is one of the most commonly missed deadlines we see when new clients come to us. New to S corps altogether? Start with what an S corp is, then come back here.
What Form 2553 does
Form 2553, Election by a Small Business Corporation, tells the IRS that your business wants to be taxed as an S corporation.
- Profit passes through to the owners instead of being taxed at the company level
- Owners who work in the business are paid a reasonable salary through payroll
- Profit above that salary can be taken as distributions without Social Security and Medicare tax
An eligible LLC does not need to file Form 8832 first. A timely Form 2553 covers both steps.
Should you file it at all?
Form 2553 is easy to file and harder to undo. Once you revoke an S election, you generally must wait five years to elect again. Before filing, make sure:
- Your profit is steady enough to support a reasonable salary
- You are ready to run payroll and file a separate business return
- The tax savings are larger than the added costs
Who can elect S corp status
- A domestic corporation or an LLC formed in the United States
- No more than 100 shareholders (family members can count as one)
- Shareholders are individuals, certain trusts and estates, or certain exempt organizations. Partnerships, corporations and nonresident aliens cannot be shareholders
- Only one class of stock, meaning every share has the same rights to distributions and liquidation proceeds
The S corp election deadline
The rule: File no more than 2 months and 15 days after the start of the tax year you want the election to take effect, or any time during the year before.
| If your tax year starts on | File Form 2553 by |
|---|---|
| January 1, 2027 (existing calendar year business) | March 15, 2027 |
| January 7, 2026 | March 21, 2026 |
| June 10, 2026 (new LLC) | August 24, 2026 |
| October 1, 2026 (new LLC) | December 15, 2026 |
- Existing calendar year business: file by March 15 for the election to apply to that year
- New business: the clock starts when the company first has shareholders, acquires assets or begins doing business, whichever comes first
- Weekend or holiday: the deadline moves to the next business day
- June 10, 2026LLC formed with the Virginia SCC. The 2 month and 15 day clock starts on the first day the company has owners, assets or business activity.
- August 24, 2026Last day to file Form 2553 for S corp status starting June 10, 2026.
- March 15, 2027First Form 1120-S and K-1s due for the 2026 tax year.
- August 24, 2029End of the simplified late relief window under Rev. Proc. 2013-30 (3 years and 75 days after the effective date).
Form 2553 instructions, section by section
Part I: Election information
- Legal business name, address and EIN
- Date and state of incorporation or formation
- The date you want the election to take effect
- The tax year you are choosing (most small businesses pick a calendar year ending December 31)
- Name, title and signature of an officer, such as the president or managing member
Shareholder consent
- Each shareholder’s name, address and Social Security number
- Number of shares or percentage owned and the date acquired
- Each shareholder’s signature and date. Missing signatures are a common reason elections get rejected
Parts II, III and IV
Most small businesses skip these. Part II is only for a fiscal tax year, Part III is for certain trusts, and Part IV is for late entity classification relief.
Where to file and how long approval takes
- Form 2553 cannot be filed electronically on its own. Mail it or fax it
- Virginia businesses currently send it to the IRS in Kansas City, Missouri. Check the current instructions for the exact address and fax number
- Keep your fax confirmation or certified mail receipt as proof of timely filing
- Expect an acceptance notice (CP261) in about 60 days
Tip: If you do not receive CP261 within about three months, call the IRS before you file your first business return. Filing the wrong return type is a headache to unwind.
Missed the deadline? Late S corp election relief
Late elections are common, and the IRS has a simplified relief process under Revenue Procedure 2013-30. You may qualify if:
- You file within 3 years and 75 days of the effective date you want
- The business would have qualified as an S corporation if the form had been filed on time
- You have reasonable cause for the late filing, such as not knowing the election was needed
- The business and its shareholders have reported income consistently with S corporation status
How to request it
- Write “FILED PURSUANT TO REV. PROC. 2013-30” at the top of Form 2553
- Attach a short reasonable cause statement
- File it on its own, or attach it to a timely filed Form 1120-S for the first year
There is no IRS user fee, which makes this far cheaper than a private letter ruling. Relief is sometimes still available after the 3 year and 75 day window, so ask even if you are past it.
What it means for your Virginia taxes
Virginia follows your federal S corporation status, so there is no separate state election. Your S corporation files Virginia Form 502 each year, and owners report their share of income on their personal Virginia returns.
You will also need payroll for any owner who works in the business, including Virginia withholding and unemployment registration. Our payroll services can set that up. Some owners also benefit from the Virginia pass through entity tax.
Form 2553 FAQs
Can I file Form 2553 online?
Not on its own. Form 2553 is mailed or faxed to the IRS. When requesting late relief, it can also be attached to a timely filed Form 1120-S.
How long does the IRS take to approve Form 2553?
Usually about 60 days. The IRS sends notice CP261 to confirm the election. If you have not heard anything after two to three months, call the IRS business line.
Do I need an EIN before filing Form 2553?
Yes. The form asks for your employer identification number. You can get one free on the IRS website the same day.
Does an LLC need Form 8832 before Form 2553?
No. An eligible LLC that files a timely Form 2553 is automatically treated as a corporation for tax purposes. Form 8832 is not required.
Who has to sign Form 2553?
An officer of the business signs the election, and every shareholder on the day of the election signs the consent. In community property states spouses also sign, but Virginia is not one of them.
What is the Form 2553 deadline for 2027?
For an existing calendar year business that wants S corp status for 2027, the deadline is March 15, 2027. You can file any time in 2026 for a January 1, 2027 start.
Can I choose a fiscal year on Form 2553?
Most small S corps use a calendar year. A fiscal year requires a business purpose or a special election and is completed in Part II of the form.
What happens if I never filed Form 2553 but paid myself a salary?
The IRS treats you as a partnership or sole proprietorship until the election is accepted. Late election relief can often fix this retroactively if you file within 3 years and 75 days.
When to get help
If you are deciding whether to elect, or you need to fix a late election, our team in Ashburn can review your situation. See our S corp election service, new business formation and business tax preparation.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
