Form 2553

What is Form 2553?

Form 2553 is a document that small businesses file with the IRS to elect to be taxed as an S Corporation (S-Corp). This election allows the business’s income, losses, deductions, and credits to pass through to shareholders for federal tax purposes, avoiding double taxation. The form must be filed within 2 months and 15 days of the start of the tax year the election is to take effect. It is typically used by eligible corporations and LLCs seeking the tax advantages of S-Corp status.