S Corp Election Guide: Deadlines and Filing Tips
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- Опубліковано 6 бер 2023
- Are you an LLC business owner looking to elect S Corp status but worried about deadlines? In this comprehensive video, Jamie Trull, your trusted CPA and financial literacy coach, demystifies the S Corp election process. Discover the crucial deadlines for filing Form 2553, strategies for late election, and essential tips to ensure compliance and maximize your tax benefits.
Whether you're a new business or looking to switch, this video is your roadmap to successful S Corp election. Don't let deadlines deter you; watch now and take control of your business's financial future.
Ready to make the leap? Grab your FREE S Corp Success Checklist at and ensure you're fully prepared for a profitable year ahead! JamieTrull.com/SCorpChecklist
IRS Form 2553 and Instructions:
► www.irs.gov/forms-pubs/about-...
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Thank you.
of course!
@@JamieTrull I received my S-Corp status letter from the IRS in late March. Was a pretty cool moment.
Always helpful and clear. Thank you :)
I always have my CPA helping me. But, I like to be in the know so I know when they are lying to me. Lol.
haha! I'm all about empowering biz owners so they don't have to fully rely on their service providers for info! Always good to have a sense check!!
This is terrific information. I heard that you can not elect to be an Scorp if your LLC is older than 3 years. If it is older than 3 years, you would need to disolve the company and then start a new one. I didn't hear that in your video. Is this not correct?
I've never heard this. An SCorp is just a tax election that you should be able to make ant any time.
If I have a single member LLC, is there an additional step to take before sending in form 2553 form? Someone told me I had to first convert my SMLLC here in Michigan.
Nope! If you have an LLC, you can file form 2553.
Hi Jamie!
Watching your video as I am kind of in a jam perhaps! Yes! It’s April 15!
So I incorporated last year in March 2023. I unfortunately learned today that I missed the March 15 date as an S-Corp. Can I still file as an S-Corp?!
My accountant/tax preparer went MIA last year around October. 🤦🏼♂️ I left it all as is but now that I am working with a new person, they’re saying that I cannot file as an S-Corp because I missed my deadline. Obviously at this point I’ve missed filing for personal and corporate taxes. What can be done?! What will happen?! Is my tax person right?!
Sorry I missed this Michael and hope you were able to figure this out. For future reference I have this video on how to file an extension. ua-cam.com/video/gGbn65qEvW4/v-deo.html
Great video, thank you. If you form your LLC on April 1st, 2023 and you want your LLC to be taxed as a s corp for 2023, will you have to file a late extension? Or just sending form 2553 within 75 days without the late extension will be enough to make it taxable as a s corp for 2023, because I am thinking to form my LLC after March 15 ..
The March15th deadline is for existing businesses. For new businesses, the clock starts when you create your LLC, so you should be good.
@@JamieTrull thank you!
If I file within 2 months and 15 days of the LLC formation (but after March 15) is this still considered a late election if I want to be S-corp status on taxes for THIS year? (2024)
Nope! You're good in that case.
Hi Jamie, a single member LLC was formed in July 2023. and s corp election is to be made now(today is 11 july 2024). Wants the S- corp election to be effective from 1st Jan 2024. Please tell what should I write in effective date in item E part 1 of Form 2553 and any other thing to be written while preparing form 2553. I understand that there is something written at top of form 2553 in case of late election. Thanks
I have some details on this in my S Corp Toolbox. In some cases it is possible to make a “late” S election after this point in time and still have it retroactive back to the first of the year. This generally requires an explanation as to the reasonable cause of the late S election on the election form. Most explanations that show that the business intended to operate as an S Corp will be accepted here. You can learn the Step by steps to filing a 2553 in my S Corp Toolbox guide on how to file here jamietrull.com/scorptoolbox
Amazing video. Can you please guide me about the date of incorporation, supposed effective date in item E, and whether it is a late election or not?
I registered a single member sole proprietor LLC in my state for locum physician work in February 2024 but did not register it with IRS. I registered it with IRS and got EIN in July 2024. I would actually start working through my LLC in July 2024 after I registered with IRS and got EIN in July 2024. Now I want to elect S-Corp by filing 2553 form. What would be the date of incorporation on form 2553? Would it be the date when I registered LLC with the state(Feb 2024) or it would be the date when I registered with IRS and got EIN(July 2024)? Would it be considered a late election of S-Corp if I file 2553 within a 2 weeks after getting EIN in July 2024 but it is around 5 months after the LLC was registered in the state?
What date should I choose as effective date for the tax year for item E? Should it be Jan 1st 2024(although the LLC was registered in Feb 2024), or it should be the date when I got my EIN in July 2024? Thanks a lot! I look forward to learning from you.
The date of incorporation for form 2553 is the date you became an LLC in your state. The EIN date doesn't affect that. It would be a late election, but something you could still do if it made sense.
@@JamieTrull Thank you so much for your help! My LLC would start functioning (receiving income) from the last week of July. Can I choose a date in July 2024 for the item E in part 1 as the effective date of the beginning of tax year. Or does it have to be the date of 2/10/24 when LLC application was filed, or 1/1/24 or 1/7/24?
I greatly appreciate your help!
Is it true that if my filing date for LLC is the 11th of the month, I can backdate it and have LLC/S-corp election for the 1st of the month (so business income that came in the 1st-10th can be counted towards it?
This is what I was told:
“If the State is able to complete your LLC registration within the same month that you receive income, that money will be able to be roped under the S-corp tax rules. For example, if you get paid on March 10th, and the LLC isn’t completed until March 20th, all the money that you’ve made since March 1st will be able to be roped under the S-corp tax rules.”
Generally if you file an election after the deadline, it will be effective on the first of the next fiscal year (Jan 1 for most businesses). You can ask for it to be back-dated by doing a late election and giving a reason on the election form. You would back-date it to either the first day you created your LLC, or Jan 1st if you started your LLC last year.
@@JamieTrull Yes, am looking to do a a late election. The LLC filing date was April 11, and I was told I would be able to have the business income that came in from April 1-10 under the S-corp umbrella still as long as I was having that income go to the EIN business bank account. Is that accurate?
We have been self employed ten years. We incorporated the business as an sCorp 2/9/2024. Working on switching over from self employed to being employed taking paychecks. Wanting to start this 4/1/24. Is that ok? Or do I have to back date it to the 1/1/24 because we run on calendar year? Sorry I am confused lol
So the S Corp election will be effective back to Jan 1, but as long as during 2024 you pay yourself a full year’s worth of reasonable salary, it doesn’t matter WHEN you pay it. Some S Corp Owners actually wait to pay themselves via payroll until the end of the year (though that’s not best practice).
Is it before March 15th or On or before March 15th?
On or before.