How to Fill in Form 2553 Election by a Small Business Corporation S Election
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- Опубліковано 15 вер 2024
- This video shows How to Fill in Form 2553. Bette takes you through a step-by-step guide to show you how to file a basic Form 2553.
The form can be found here:
www.irs.gov/pu...
I'm going to walk you through preparing the form 2553 to make the S corp election.
So this is the IRS Form 2553 Election by a Small Business Corporation, otherwise known as an S corp. There's a couple of pages to this form, but you're really only going to look at the first two pages, most likely.
So let's scroll back up to the top. So here you've got the name and this should be the business name that you registered with both your state and with the IRS. So I'm just going to make up this information for argument's sake here. ABC Corporation, Inc. And you should have also gotten an identification number as part of setting up your business. And again, I'm going to make this number up. And all of this needs to match. So it needs to match the state information. It needs to match the IRS and federal information. Otherwise, you're going to have paperwork problems when you submit this.
And the date incorporated, again, this is going to match your state information. And your state. Now, if you want to change the name or address, you can click these boxes, but for now, we're just going to use the information and say that it matches what we already filed.
So this is where you're going to pick the effective date. And there are some rules as to when you are going to have your S election go in place. Generally, it's either going to be the date that you started business, if it's a brand new business. Or it's going to be the beginning of the next year. So if you are in your second, third or fourth year of business, and you say, "Hey, now is the time that I want to become an S corporation," you would do next year's January 1 date. I'm going to say that actually I'm just starting this year, so I'm going to say it's as of my date of incorporation. Generally, you're going to have a calendar year, for most people watching this. There are other year ends you can have, but for most companies, it's a calendar year. So you can kind of ignore box 2, 3, or 4.
In the previous video, I said that you can't have more than 100 shareholders. So here you go. This is your warning. And who is the IRS able to call? You can have this be yourself, if you're the owner. You can have this be your CPA. It could be your lawyer. I've put my name down for some of my clients, and I've never actually gotten contacted by the IRS about it. So we're just going to make up a name and a phone number just for argument's sake.
Now this next part for late election. If you're filing this after the fact, and you're not making a timely election, that's something you're going to want to go ahead and speak with your CPA about, because this gets a little tricky. So we're going to go through a scenario here where you're not filing late. Again, I said before, our date of incorporation, date of effective date is all in line. We're going to say, we're not filing late.
Then you're going to come down here. You're going to sign it. You're going to type in your title. It's probably president or something like that. And you got to sign this and date it.
And now you're going to move to the next page. This is where you start with the owner information and it pretty much lays out what goes in each box right up here. So we'll use Joe Smith again and maybe he also lives where he works. It's not that unusual. Any town, Florida.
Now here, you got this whole little paragraph here. Make sure you read this. You shouldn't sign anything that you don't read first. But basically you're consenting to make the S election as an owner. So you would sign there. You would put the date in here. If you're the only owner, you can go ahead and just put 100, you own 100%. And since this is a brand new company, the date we acquired the shares is the date it was formed.
Here you're going to put your social security number and the shareholder's tax year. Individuals, it's always 12/31. So for every owner, you're going to go through this process, make sure everything is signed. Unsigned forms will get rejected and sent right back to you. And that's kind of all you need to worry about.
There are more pages, as you can see. There's all kinds of stuff. It's really not going to really apply in most situations - certain types of trusts can be an owner - Qualified Subchapter S Trust.
And then this is about the late election, which I said before, contact your CPA if you're in a late filing situation. It's owner information and basic information about the business itself. And that's pretty much it. You print this out, you sign it and you send it off to the IRS.
I hope you find this helpful. If you have questions about filing S corporation elections, please feel free to contact me. Also subscribe if you're enjoying these videos and we'll keep giving you useful information.
I was stressed out when I started to fill this out. Thank you for taking the time to explain how simple this is.
Glad it was helpful!
Paul? Me too!! We should petition the government to change from the mind set of worker to company owner!
Great video. The IRS makes it look for complicated than it is. Thanks for simplifying! Thumbs up.
Many thanks for simplifying this. Getting stressed was an understatement.
You are welcome!
Thank you for doing this video. I wanted to confirm if I was following the IRS instructions properly, and this video helped me. I filled mine out and faxed it in yesterday. Something I did differently was adding "C/O" with my home address, since I'm the majority shareholder. That way, I can get it quicker than using my registered agent to forward it.
Thank you! I was on hold with the revenue service for 31 min. In between time, I saw your video on my search. I started looking at your video. I was almost finished the video when the revenue service employee answered my call just to tell me he couldn't help but could give me a different department. Why didn't I come here first. 😣 But I'm so thankful now! 😄
Thank you so much for walking through all the steps, it was so overwhelming before!
Great video, thank you. I was overwhelmed once I got to part 3 and 4. Since I am filing for a new business your video really took some weight off of my shoulders.
Happy to help!
Looking at form 2553 this morning and was not sure how to complete it. Was looking for other S corp info this evening and stumbled across this video, I recently set up a corporation and am feeling my way along, what perfect timing. Thank You for making this information available.
Thank you for doing this. I am so grateful you put this out there. I was making it much more difficult than it really was.
Thank you for posting this video. I’ve created my LLC completely solo and this issue was the only thing that had me dumbfounded lol Much appreciated!
Just watched this video to apply for my very first business and it really helped out. Thank you so much!
Thank you! Good luck with your new business!
Loving it!! Thank you for this wonderful video :)
Great video simple and to the point
Thank you so much, this was a huge help!
Awesome!
Thank you for this video. Really Simple
We try!
Thanks for making thats easy to understand.
Glad it was helpful!
THANK YOU VERY CLEAR INFORMATION
If you formed your llc in the later half of the year, do you still put 1/1/17 or would you put the date you started the company in section E?
Thanks, Bette! Super helpful :)
Thanks!
OMG...WHAT A GREAT VIDEO AND HELP. YOU ARE THE BEST..CIAO FROM SOUTH FLORIDA..
Hi James- glad you liked it. I'm also in South Florida! Where are you?
Thank You - very helpful
Glad it was helpful!
Thanks for sharing. This was very helpful. You answered all my questions. I really appreciate it.
Glad you found it helpful!
Very clear tutorial. Thanks
Thank you, the IRS instructions are far too complex for no reason apparently....you saved me from most certainly getting this kicked back to me.
Yes it is complicated! The problem I think is that the IRS has to put out the instructions for every use of the form, even if 80% of people only need simple instructions!
Great presentation
Thank you for sharing your knowledge. This was a great easy to follow video and answered my questions.
Hi Bette, you mentioned something about s corp owners who do their election late. I think I fall into that category. I launched my s corp in 2017 but I haven't filed taxes since. What should I do now in terms of that election now that i've decided to file all my company's back taxes? Thank you for your help on this. Christian
As of now you can do the election to be effective for 2022.
Great presentation. Thanks for making it very simple to follow!
Thanks for the explanation on Section E.
Most welcome!
Hi, thank you so much for this video. It basically walked me through the entire form. I just have one quick question though, it says under Section E: Caution, a corporation (entity) making the election for its first tax year in existence will usually enter the beginning date of a short tax year that begins on a date other than 1/1. What does this mean? Can I not put 1/1?
Glad you like the video! This means that if your business started on a date other than 1/1 you would put that date in instead.
Great Job , thank you!
Thank you, great video
In the "sign here" section next to the "title" box is my wet signature "my name, title" or just "my name"? If I were signing a contract I would always sign as "my name, title".
Thanks for sharing this. I had questions about Section E that you answered very well.
Glad it was helpful!
thanks hub great video
Thank you so much. This was a very informative video.
My sole proprietorship business has been operating for several years. I just changed my entity to an LLC (3/13/20). I now would like to elect to be taxed as an S corp. Would I be able to begin the 2020 calendar year as an S corp and not wait until 2021?
MaryAnn you have 75 days from forming the LLC to file the 2553 form, OR you can file it with the first time you file the tax return (in 2021) with it retroactively going back to 2020. Thanks!
thank you. this was very helpful. well-explained.
Thank you!
You're welcome!
I just started my LLc In August of this year, 2019. An accountant contacted me and wanted me to join them and told me about having to file EEC. But when i said i had to wait to get funds up and asked what i can do until then he stated to go file form 2553 and it was not easy to do. Do i have to file both forms or just this one. He said i had 75 days to do it which is very soon. Gettiing nervous about this. Thank you
Hi John- I do not know what EEC is, so I don't think I can help there. If you are going from LLC to s-corp I recommend doing the Form 8832 www.irs.gov/pub/irs-pdf/f8832.pdf and the 2553. Feel free to contact my office if you need help: bit.ly/1Jvxb71
Many thanks to the informative explanation. I have a question for a statement in "Instructions for Form 2553" on the right bottom corner of page 4 "If the corporation timely filed an election, but one or more shareholders didn’t timely file a consent, see Regulations section 1.1362-6(b)(3)(iii)." Is there such a form for each individual (shareholder) to fill in as well except for Form 2553 which I assume is for what is mentioned the corporation?
Hi- I don't think there is a form for it, I think you just write a letter to the IRS and request relief.
MUCH APPRECIATED. thanks
quite helpful, thank you!
If a Trust owns my LLC, what should I put for the social security number? My trust that owns the LLC doesn’t have an EIN number nor is required to have one. Should I write out “beneficiary’s SS#”?
What if I registered with slightly different names with the IRS and state? Will I need to change one of them? Example: I registered with the IRS as "ABC Productions" classifying the company as an LLC. I registered with the state as "ABC Productions LLC". I left the LLC part out of the IRS form to obtain the EIN. Thank you in advance!
I'm not 100% sure but I think the IRS will figure it out. You can change the name of the company with the IRS if you are concerned.
Very helpful!! Thanks!!
Glad it was helpful!
Do you need shareholders?? Or is it okay to only put down yourself as 100 owner??
If you are the only owner then you are the only shareholder so list yourself and put 100%
Thanks for the video! if you filed your INC on August 18, 2017 do you start on 1-1-18 or 1-1-17 and what reason do you state for being late? Also, do you have to put any reason on the top of the application?
Hi, Thanks for an awesome video. I have a quick question. First time, simply electing S-Corp. On the video you said don't worry about pages 3 and 4, if it doesnt apply to me. Does that mean leave those pages blank? When submitting, do I still submit all pages (including blank) or only first two pages? Thanks so much in advance.
You can include them blank or leave them out.
Hello Bette, I'm sorry for bothering you, but I wanted to know if I have 2 owners in the company, can I put one owner with 100% of ownership and the other with 0% or since the second owner has 0% I don't have to put him there? Thank you in advance.
Thank you.
Thank you so much for the video! I have a question though: I'm filling out this form today and I'm going to make the date of election 1/1/18, does this count as late filing? If so, What do I say to the IRS?
4:44 Page 2 Letter J: Youre using the same address as the business address, or should you be using that member's home address? This is something that should be taken more seriously, no?
I've seen the owners use both their personal home address and the business address on the form.
for the name portion do I need to just put my corp name or can I put that along with by doing business as name?
Hi Nadia- I would put it as- "Corp Name dba doing business name" Hope that helps!
@@BetteHochbergercpa thank you!!
Filing date questions form 2553:
Hello my business started in 2015 as a Sole Prop. Know in 2018 I have decided to become a S-corp.
I will file with the state this month. So the date of my corportion begins from this month correct?
Thank You.
Hello Better, great video thank you for sharing. I have a questions... What would you advise your clients to write in the section about filing late. my business started this year, Jan 20, 2022. But I never sent off the documents. What would suggest to write? thank you in advance for any assistance.
Wait until you file the s-corp 1120S tax return for 2022 (next year in 2023) and include the late election then.
@@BetteHochbergercpa thank you Better, but since I am filing for the first time for 2022 in 2023, doesn't that mean Im actually not late?
I just sent in my LLC paperwork and officially it was issued on 4/3/19. Do I still use Jan 1 on this document in Box B?
You would put the date the business formed 4/3/19
Thanks for the video Bette, I started a new inc., will I be penalized or will my form be marked incomplete if I leave Part II, Part III, an Part IV blank?
Thanks for the information.
I am very confused that I must mark and place if I want to start paying taxes until next year, because in fact the corporacio was formed until March 23 of this year 2019, but has not yet started any kind of business or trade with her you do not want to do anything until everything is formally well and we understand all the steps. this would be correspondingly on the D and F sidewalks. THANK YOU.
estoy muy confundida que debo de marcar y colocar si quiero empezar a pagar los impuestos hasta el proximo año, pues de echo la corporacio se formo hasta el 23 de marzo de este año 2019 , pero aun no se a empezado ningun tipo de negocio o comercio con ella no se quiere hacer nada hasta que todo este formalmente bien y entendamos todo los pasos. esto seria correspondientemente en la casiillas D y F. GRACIAS.
Hi- if you are just starting out you can elect file this election right away. You won't need to file the tax return for 2019 until 2020.
So helpful!
Thank you for nice video! It helps a lot! I have a quick question. You have put EIN but when I went to irs site to apply for EIN(I am in Oregon btw) it says below
" Confirm your selection of S Corporation as the type of structure applying for an EIN.
We must initially classify you as a regular corporation. In order to elect S corporation status for your organization, you will need to file Form 2553 (Election by a Small Business Corporation). Once that form has been approved, we will update your account."
Is that mean I have to submit 2553 form first without EIN and I will receive the number after that??
Bette Hochberger thank you so much!!
Bette Hochberger I'm in the same boat. Had a partnership and closed that and opened as a Scorp (C Corp first and doing 2553 now) when filling for new EIN do I do it as C Corp and later change to S Corp? Not sure I don't want to mess up. Cam it later be changed. Thanks very helpful
Hey! Thanks for the awesome video, do you know if we have to fax in pages 3 and 4 if we left them blank?
It doesn't hurt to send them in even if they are blank. :-)
When filling out for my new EIN it said I couldn't use the apostrophe in our company name and to not put Inc. On our articles of Inc. it is with the apostrophe and Inc. and that is how I'm putting on this form. Is that correct or will it say it's not exact? Also do you need to send the last two pages if they don't apply? Thanks for the video it was very helpful!
Hi John- I'm really not sure. You might have to call the IRS and ask them directly. Sorry I couldn't help.
Can we do this process with LLC or do we have to change LLC so something else ?
You can do it with an LLC but I prefer the 2 step process using the Form 8832 www.irs.gov/pub/irs-pdf/f8832.pdf I really need to do a video for that!
My Hero
Do I need to submit the last two sheets if nothing is on them?
Erica- Good question. I always include the bank sheets so the IRS knows that nothing is missing. It's like when you get things that say "this page intensionally left blank."
Also, how to check whether IRS has received my filed 2553 form?
You should receive a letter in the mail from the IRS notifying you that your business is now an s-corp. If you didn't receive it you should call them to find out. Good luck!
Thank you so much, yes I just did have received the letter.
Question - We file previously year return as a LLC and we elected to S Corp in 1/2018. Is it consider late if we file today?
Thank you
If you elected s status for 1/2018 you won't be filing until 2019.
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?
You receive a letter from the IRS that your election was accepted.
Hello, I have a LLC and I want be able to use the S-Corp tax benefits, but still be incorporated as LLC. How should I fill out the form?
The name/structure stays the same. Only your federal (and state depending on where you live) tax treatment change. You would want to file the Form 8832 as well to turn the LLC to a C-corp, then make the S election.
AWESOME - THANKS
Glad you liked!
If I fill this form out now in June/July would I be considered filing late because it’s past the March deadline? But I’m barely starting the company now
If you missed the initial deadline you can file the election when you file the tax return next year.
so I created an LLC on feb 29,2018 - , and I want to File for S corp - I have 75 days from that day correct ? and do I have to file 2553 and 8832 , or just 2553 .
wait so what is the form 8832 for ? I thought the 8832 is only for C-corp
Thanks for the information. My wife and I are independently incorporated, but we are buying a Dental office together and want to form a new Business name, EIN and new S-Corp with both our names. What do I fill under " Date Incorporated"?
Hi Amiris- if you are setting up a new entity you have to use the date incorporated that you created the entity with the state.
@@BetteHochbergercpa Thank you
What if it is late. Do you date the document the current date? It’s supposed to be back dated.
Hi Mayra- the IRS will process the form based on when you mail it.
Ok thank you!
Hi, how are you? It's such a great video. Thank ank you, also I have a question, so I'm completing this for my father
(as he is the owner of the company) and he wants for me to be responsible for all his paperwork as an assistant manager. whose information I should put in line H if I am the one doing this. Or I need to go to a CPA?
Hi Doinita- as long as you are an officer of the company or legally can represent the company you can put your information in there. You should consult a business attorney. Good luck!
@@BetteHochbergercpa thank you
Hello what if some of the share holders are not USA citizens
Can a S-corp only have 100 shares or does is need to be 10,000? It will never sell any.
The 100 limit is on the number of owners. I don't think the number of shares matters, but check with a lawyer.
hello.
thanks for this usefull information.
i bin woring as sole pr. and just register my llc in February 2019 can i select day january 2019 or it has to be after llc registered.
Depends on how far back your state will let you register. Florida where I am only let's you go a few days back.
@@BetteHochbergercpa thanks for quick reply.
thank you
great, thanks
Help me so much
So last pages, we send in blank or no?
If nothing on there applies you can leave it blank when you send it in
. How to find this explanation in Spanish .thank you.
Lo siento no lo se
I am a single/sole member LLC elected to be treated as a S corp,(2553) Do i put my (Birth)name on line 1, and line 2 Business name. Or do I put Business name on both lines for the W9? TIA!
If you want the tax form to go to the business put the business name and EIN on the W-9.
@@BetteHochbergercpa My Business names in line 1&2? and thank you!!!!!
@@KandiReed6975 Just line 1
@@BetteHochbergercpa Ty so much
@@KandiReed6975 I just did a new video on 1099-MISC/W-9. You can see it here ua-cam.com/video/EeUHmnBsp0U/v-deo.html
Can this form be done online?
Thanks Bette...if I were still single I'd be chasing after you!;-)
sorry @bkochu I've been off the market for a long time lol
LMFAO
Can i fax this form to the irs?
Yes but it depends on what state you live in. See the chart here: www.irs.gov/instructions/i2553#idm139773155412272
@@BetteHochbergercpa Am i required to file form 8832 as well?
Thank you!!
Of course.
Thank you
Thanks you !!