The federal tax form Form 2553 enables small enterprises to choose to be taxed as S corporations. The S corporation status has various advantages, including limited liability protection and pass-through taxation. In this article, we’ll walk you through the Form 2553 filling procedure and respond to some frequently asked questions.
Verify that your company qualifies for S corporation status before completing Form 2553. Your company must fulfill the following criteria in order to be eligible: Be a domestic corporation with the following requirements:
– No more than 100 shareholders;
The first section of Form 2553 requests basic information about your company, such as the corporation’s name and address, incorporation date, and tax year.
Step 3: State That You Have Selected a S Corporation
You must state that you are making a S company election in section E. A justification for your lateness must be given if you are submitting the form.
Information regarding your shareholders, including their names, addresses, and Social Security numbers, is requested in the following part of Form 2553. Additionally, you must state the percentage of stock that each shareholder owns.
Can I file Form 2553 electronically?
Can I fax Form 2553?
No, you only need to submit Form 2553 once to choose to become a S corporation. For your S corporation, you must submit a yearly tax return, nevertheless.
The IRS normally processes Form 2553 in 60 days. The volume of forms being handled and the complexity of your situation can, however, affect the processing time. Call the IRS at 1-800-829-4933 if you need to find out the status of your form.
In conclusion, document 2553 is a straightforward document that small businesses can use to their advantage. You can choose S corporation status and benefit from pass-through taxation and limited liability protection by following these simple procedures.
The question appears to be incorrect because the correct form number is 2553 and not 2253. Eligible corporations can elect to be taxed as a S corporation for tax purposes by using Form 2553. To make the choice, the form must be delivered to the Internal Revenue Service (IRS). The procedure for filling out and submitting the form is most likely described in the article “How to Fill Out Form 2553: A Step-by-Step Guide.”