The only comment I would add to Mr. Lezon’s answer is to be sure to timely file the Form 2553, which is by March 15 of a tax (tax lingo “fiscal”) year ending December 15, to be treated as an S-Corporation for the current year. Otherwise a late filing in the current year will be effective for the following tax year.
Can a single member LLC file Form 2553?
Corporations, single-member LLCs, and multi-member LLCs can all file Form 2553 so they can elect to be taxed as an S corp. However, your entity must: Be a domestic corporation or entity. Have no more than 100 shareholders (these are owners of the business).
Where do I enter my business C / O on Form 2553?
If your business’s mailing address is the same as your personal address, enter “C/O” and your name after the name of the corporation. For example, “My Super Rad Business C/O Your Name.” Then enter your company’s mailing address. From here, the form will walk you through the steps:
When to request reasonable cause from the IRS?
Request relief on the grounds of reasonable cause. Reasonable cause refers to when a taxpayer didn’t file the forms on time due to a “valid reason” so to speak. In most cases, we’ve found the IRS to be fairly lenient when it comes to granting relief and allowing a corporation to elect S-Corp status in the year intended.
Here are the details of when your business must file Form 2553: Form 2553 must be filed no later than two months and fifteen days after the start of the tax year in which the S corporation will take effect. For the upcoming tax season, that filing deadline will be March 15, 2020.
How do you write your business name on Form 2553?
First write the name of your business as it appears on legal documents. If your business’s mailing address is the same as your personal address, enter “C/O” and your name after the name of the corporation. For example, “My Super Rad Business C/O Your Name.” Then enter your company’s mailing address.
Who is required to sign S Corp Form 2553?
Signature, title, and date: Form 2553 must be signed and dated by an officer authorized to sign, such as a president, vice president, treasurer, chief accounting officer, or another corporate officer. On this page, enter the names and information of each shareholder required to consent to S corp election.
