Please help, I know there’s no fee to file the form but I read somewhere that some companies might be subject to a $5,800 fee if they choose a non-calendar fiscal year. What does that mean?
Thank you for the detailed video. I started my business as LLC in December 2013 (sole-owner) and now want to elect it as S-Corp for Tax purposes only for the year 2019. Is Form 2553 the right form? If yes what date I should put in Section E of form 2553? Will I need to do anything with the State Incorporation Commission and notify them while its just electing my LLC as S-Corp for Tax purposes only. Could you please also make a video showing how to change LLC to S-Corp for Tax purposes? Thank you
It's 3/19/21. I wanted to do a calendar tax year, but 3/15/21 is the deadline for filing for the calendar year, correct? I incorporated 2/5/21 so wondering if I should do a Late Corporation Election Response if I want to end on the calendar year, or if I can do a fiscal year ending month for the selected tax year instead.
Hello! While we are an accounting industry-adjacent business and have a lot of knowledge about the tax world, it's important to note that Canopy does not offer any official tax advice, and we highly recommend sourcing a CPA or tax professional to ensure the utmost correctness of your form. We have sourced the IRS instructions for form 2553 here: www.irs.gov/instructions/i2553
filling this form 2553 is the first step to request the IRS to tax a C Corp or an LLC. how do we inform the Secretary of the State that we need to be Tax as S Corp. is the Statement of information the way to let the secretary of the state about our desition? or the IRS will inform the state.
Hi Julio! You have to set up an S-corp with your state's Secretary of State office, and then you can elect to be taxed as one. Form 2553 will come after you've set up the corporation.
Question I’m currently going to have to shareholders that only own one percent of the company. Our attorneys advised us that we needed to have a multimember LLC versus a single-member LLC as it’s possible for a judge, a court or a debtor To break the corporate veil if there was ever a lawsuit. However, I will be majority stake holder at 97% basically the only two shareholders are they are simply for administrative purposes. They receive no income from the company nor do they contribute anything to the company. How do I properly fill that out on the form?
Thanks for the question! That definitely sounds like a tricky situation. Unfortunately, form 2553 is only for business owners looking to transition to an S-corporation and doesn't apply to LLCs. If you're interested in transitioning your LLC to a corporation, we would encourage you to talk to your lawyers about how best to structure your articles of incorporation based on state and local laws.
So I did my form 2553 about 2 Weeks ago and Mailed it to the place where it’s supposed to go. How do I know weather I got approved and I’m an S Corporation?
Hi! Form 2553 is not a required form. You only need to fill out this form if you want your business to be taxed as an S Corp and you meet the eligibility requirements. Profit is not one of the requirements. You can find more info about eligibility requirements here: www.irs.gov/instructions/i2553
I just formed an s corp today. I will not have any income for this year (2022). So, do I still file for this year or file in 2023?
Please help, I know there’s no fee to file the form but I read somewhere that some companies might be subject to a $5,800 fee if they choose a non-calendar fiscal year. What does that mean?
Thank you for the detailed video. I started my business as LLC in December 2013 (sole-owner) and now want to elect it as S-Corp for Tax purposes only for the year 2019. Is Form 2553 the right form? If yes what date I should put in Section E of form 2553? Will I need to do anything with the State Incorporation Commission and notify them while its just electing my LLC as S-Corp for Tax purposes only.
Could you please also make a video showing how to change LLC to S-Corp for Tax purposes? Thank you
It's 3/19/21. I wanted to do a calendar tax year, but 3/15/21 is the deadline for filing for the calendar year, correct? I incorporated 2/5/21 so wondering if I should do a Late Corporation Election Response if I want to end on the calendar year, or if I can do a fiscal year ending month for the selected tax year instead.
Hello! While we are an accounting industry-adjacent business and have a lot of knowledge about the tax world, it's important to note that Canopy does not offer any official tax advice, and we highly recommend sourcing a CPA or tax professional to ensure the utmost correctness of your form. We have sourced the IRS instructions for form 2553 here: www.irs.gov/instructions/i2553
filling this form 2553 is the first step to request the IRS to tax a C Corp or an LLC. how do we inform the Secretary of the State that we need to be Tax as S Corp. is the Statement of information the way to let the secretary of the state about our desition? or the IRS will inform the state.
Hi Julio! You have to set up an S-corp with your state's Secretary of State office, and then you can elect to be taxed as one. Form 2553 will come after you've set up the corporation.
Question I’m currently going to have to shareholders that only own one percent of the company. Our attorneys advised us that we needed to have a multimember LLC versus a single-member LLC as it’s possible for a judge, a court or a debtor To break the corporate veil if there was ever a lawsuit. However, I will be majority stake holder at 97% basically the only two shareholders are they are simply for administrative purposes. They receive no income from the company nor do they contribute anything to the company. How do I properly fill that out on the form?
Thanks for the question! That definitely sounds like a tricky situation. Unfortunately, form 2553 is only for business owners looking to transition to an S-corporation and doesn't apply to LLCs. If you're interested in transitioning your LLC to a corporation, we would encourage you to talk to your lawyers about how best to structure your articles of incorporation based on state and local laws.
So I did my form 2553 about 2 Weeks ago and Mailed it to the place where it’s supposed to go. How do I know weather I got approved and I’m an S Corporation?
Hi Rashen, I've found this article for your reference: www.upcounsel.com/check-s-corp-status
What happens when you havent had any profits in the first year? You don't need to worry about this?
Hi! Form 2553 is not a required form. You only need to fill out this form if you want your business to be taxed as an S Corp and you meet the eligibility requirements. Profit is not one of the requirements. You can find more info about eligibility requirements here: www.irs.gov/instructions/i2553