How late can you make an S-Corp election?

within two months and 15 days
For a New Business A corporation or LLC must file an S-Corp election within two months and 15 days (~75 days total) of the date of formation for the election to take effect in the first tax year. Example: Your articles of formation was filed on August 21st.

Does S-Corp election expire?

The S Corporation election deadline for LLCs and C Corporations is March 15, 2022.

Do you have to file S corp election every year?

How Often Do I Need to File Form 2553? Once a small business files Form 2553 and is approved by the IRS to be treated as an S Corp, the election remains valid, and the business owner does not have to file Form 2553 every year.

What is a reasonable cause for late S corp election?

Examples of situations where the IRS has found reasonable cause include: (1) the entity’s responsible person failed to file the S election; (2) the entity’s tax professional failed to file the S election; and (3) the entity did not know it needed to affirmatively file an S election.

Do you have to file S Corp election every year?

Should I elect S corp status?

Although being taxed like an S corporation is probably chosen the least often by small business owners, it is an option. For some LLCs and their owners, this can actually provide a tax savings, particularly if the LLC operates an active trade or business and the payroll taxes on the owner or owners is high.

What constitutes reasonable cause for late S election?

Do you have to file S-Corp election every year?

Can you file S corp election online?

You can file your Form 2553 with the IRS online, by fax, or by mail. For more detailed information about S corporations and making the election, see Instructions for Form 2553, available at

Can you file as an S-Corp retroactively?

Electing S-Corp Status Retroactively is Possible However, it is possible to go back as far as 3 years and 75 days from the date the change is requested (IRS Late Election Relief). Going back that far means you’ll need to amend your tax returns (as if the election was in place – this means making new W-2’s, too).

When does the s election for an S corporation take effect?

During the year preceding the first tax year the S election is to be effective; or On or before the 15th day of the third month of the initial S corporation year (Sec. 1362(b)(1); Regs. Sec. 1.1362-6(a)(2)(ii)).

Is the S corp election valid for 2021?

For the S Corp election to be valid for 2021, existing LLCs and C Corporations (with a tax year that began on January 1) will need to file IRS form 2553 no later than March 15, 2021.

When does the first tax year end for an S Corp?

The first tax year is deemed to end on the date that the shareholder terminated his/her interest in the S corporation, and the second tax year ends on the last day of the normal tax year.

When to file a retroactive election for an S corporation?

On or before the 15th day of the third month of the initial S corporation year (Sec. 1362 (b) (1); Regs. Sec. 1.1362-6 (a) (2) (ii)). Thus, the S election can be retroactive to the first day of the tax year if the election is filed within 2 ½ months after the beginning of the tax year.