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File IRS Form 2553 Online
Make the S Corp election to potentially lower your tax bill. We handle IRS Form 2553 accurately and on time, helping you avoid costly mistakes or delays.
- Avoid Double Taxation
- Potentially Lower Tax Bill
- Pass-Through Taxation
Get Started
Have questions? Call (877) 777-0450 to speak with our business formation specialist.
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Elect S Corp Status in 3 Steps
1
We Confirm Eligibility
You complete a short questionnaire; we review your information to confirm your business meets IRS requirements for S Corp eligibility.
2
We Prepare Form 2553
Our specialists accurately complete Form 2553 using your details, helping prevent errors that could delay your S Corp election.
3
You File With the IRS
We provide your completed form and clear instructions so you can submit your S Corp election to the IRS with confidence.
Form 2553 Filing Package
$99+ one-time election preparation fee
What's Included in Swyft's Form 2553 Filing Service
- An eligibility review to confirm your business qualifies before we prepare anything.
- Preparation of Form 2553 using your business and shareholder details.
- A specialist accuracy review before your form is finalized.
- Your completed, IRS-ready form, along with clear instructions for submitting it.
- Access to your order status through your online account.
We prepare your election accurately and on time. You complete the submission to the IRS, following the instructions we provide.
What Is IRS Form 2553
Form 2553 is the form the IRS requires to elect S Corporation tax status. Filing it does not create a new business; it changes how your existing LLC or corporation is taxed.
Under an S Corp election, business profits pass through to the owners' personal tax returns instead of being taxed at the corporate level first. This avoids the double taxation that standard C Corporations face, and it can reduce self-employment tax on part of an owner's income, since only a reasonable salary is subject to it, not the full profit.
Form 2553 is often confused with Form 8832, which changes your entity's federal tax classification in general. Form 2553 is specifically the S Corporation election, and for most LLCs and corporations pursuing S Corp status, Form 2553 is the only form needed.
Under an S Corp election, business profits pass through to the owners' personal tax returns instead of being taxed at the corporate level first. This avoids the double taxation that standard C Corporations face, and it can reduce self-employment tax on part of an owner's income, since only a reasonable salary is subject to it, not the full profit.
Form 2553 is often confused with Form 8832, which changes your entity's federal tax classification in general. Form 2553 is specifically the S Corporation election, and for most LLCs and corporations pursuing S Corp status, Form 2553 is the only form needed.
Who Can File Form 2553
To qualify for an S Corp election, your business generally needs to meet these IRS requirements:
- Be a domestic LLC or corporation
- Have no more than 100 shareholders
- Have only one class of stock
- Have shareholders who are individuals, certain trusts, or estates, not other corporations or partnerships
- Have shareholders who are U.S. citizens or residents
LLCs Electing S Corp Treatment
LLCs elect S Corp tax treatment using Form 2553 without changing their legal structure. Corporations use the same form to elect S Corp status instead of being taxed as a C Corporation.
Who Benefits Most from S Corp Status
S Corp status tends to benefit businesses with consistent profits large enough that the self-employment tax savings outweigh the added payroll and compliance work. Businesses with inconsistent income, or income too small to justify a formal payroll setup, may not see much benefit.
When Should You File Form 2553
Standard Deadline
File within 2 months and 15 days of the start of the tax year you want the election to take effect.
Newly Formed Businesses
You can file at any point within the first 2 months and 15 days after formation, and the election can apply to your first tax year.
Existing Businesses
If you miss the window for the current year, you can still file; your election just takes effect the following tax year, unless you qualify for late election relief.
Late Election Relief
The IRS allows some businesses to file late and still have the election applied retroactively, if there's reasonable cause for the delay and certain conditions are met.
What Information Is Required to Complete Form 2553
Before you file, gather the following:
- Your business name and Employer Identification Number (EIN)
- Your business formation date and state
- Shareholder or member names, addresses, and ownership percentages
- Your desired tax year
- Your effective date for the election
- Signed consent from each shareholder or member
Why Choose Swyft Filings for Your S Corp Election
Maximize Tax Savings
Electing S Corp status can help you reduce your tax burden by avoiding double taxation and lowering self-employment taxes.
Deadline Assurance
Our team monitors IRS requirements and ensures your Form 2553 is prepared on time.
Eligibility Verification
We carefully review IRS rules to confirm your business qualifies before submitting your election.
Accurate, IRS-Ready Filing
Your Form 2553 is prepared and reviewed by specialists to meet IRS standards, minimizing errors and delays.
Can I File Form 2553 Myself
Yes, Form 2553 is a form you can complete and submit to the IRS on your own. Here is a look at what that involves.
Features
Filing It Yourself
Using Swyft Filings
Cost
Free, no IRS fee
$99
Time
You research eligibility rules, deadlines, and instructions
We handle eligibility review and form preparation for you
Accuracy
Errors or missing shareholder consent can delay or void your election
Specialist-reviewed before it's finalized
Deadline Tracking
Your responsibility
We help you file within your eligibility window
Ongoing Support
None
Available before, during and after
DIY works if you're confident with the eligibility rules and deadline. Most owners choose Swyft to skip the research on eligibility criteria and forms and avoid a voided election.
Reasonable Compensation for S Corp Owners
Once your S Corp election is active, the IRS expects owners who work in the business to pay themselves a reasonable salary through payroll before taking any additional profit as a distribution. This matters because only your salary is subject to payroll tax; distributions are not.
Paying yourself too little in salary and too much in distributions is a common audit trigger. The IRS defines "reasonable" based on factors like your role, industry, and what similar businesses pay for similar work. Underpaying reasonable compensation can result in reclassified income, back payroll taxes, and penalties.
This is a tax strategy question specific to your business. We recommend working with a tax professional to set your compensation once your election is in place.
Paying yourself too little in salary and too much in distributions is a common audit trigger. The IRS defines "reasonable" based on factors like your role, industry, and what similar businesses pay for similar work. Underpaying reasonable compensation can result in reclassified income, back payroll taxes, and penalties.
This is a tax strategy question specific to your business. We recommend working with a tax professional to set your compensation once your election is in place.
What Happens After Filing Form 2553
The IRS Reviews Your Election
Processing times vary, but confirmation typically takes a few weeks to a couple of months.
You Receive an Approval Letter
The IRS sends written confirmation once your S Corp election is accepted.
You File Your First S Corp Tax Return
Your business now files taxes under its new S Corp status starting with the effective date of your election.
You Maintain Your Status Going Forward
This includes running payroll for owner-employees and continuing to meet S Corp eligibility requirements.
Why 600,000+ Owners Trust Swyft Filings
Still have questions?
Speak directly with a Business Specialist, please give us a call at (866) 797-9938. We love to help!
Focus on Your Business, We'll Handle the Paperwork
Our team of specialists is here to help you with all your business formation and compliance needs. Let us handle the complex paperwork so you can focus on growing your business.