Tax
S-corp Election (Form 2553)
Quick definition
IRS form a corporation files to elect S-corp (pass-through) taxation; must be filed within 2.5 months of formation or start of the tax year.
Form 2553 must be signed by all shareholders and filed within 75 days of either (a) the corporation's formation or (b) the beginning of the tax year for which the election should apply. Late elections may qualify for relief under Rev. Proc. 2013-30. Only viable if you have ≤100 shareholders, all US residents/citizens, and one class of stock, making it incompatible with most venture financing.
Frequently asked questions
- What is S-corp Election (Form 2553)?
- Form 2553 must be signed by all shareholders and filed within 75 days of either (a) the corporation's formation or (b) the beginning of the tax year for which the election should apply. Late elections may qualify for relief under Rev. Proc. 2013-30. Only viable if you have ≤100 shareholders, all US residents/citizens, and one class of stock, making it incompatible with most venture financing.
- Why is S-corp Election (Form 2553) important for startups?
- S-corp Election (Form 2553) is a tax concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does S-corp Election (Form 2553) belong to?
- S-corp Election (Form 2553) is a Tax term in the StartupCFO finance glossary, alongside other tax concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about S-corp Election (Form 2553)?
- Beyond this definition, see the related tax terms below, or explore StartupCFO's insights and tools that put S-corp Election (Form 2553) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
Want a CPA to own this?
Deadlines tracked, estimates filed, and multi-state compliance handled across all 50 states, with CPA sign-off.
No spam, ever. If the download doesn't start, email us.
Or talk it through:
