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Form 2553, Election by a Small Business Corporation, cant be filed electronically. The form instructions state that the corporation needs to mail or fax the original copy of the form to the IRS. Refer to the IRS Instructions for Form 2553 for more information.
How long does the process take? Typically, you will get a verdict on your form 2553 application within 60 days of submitting it to the IRS. If you have not heard back in that timeframe, docHub out to the IRS directly. You can call the IRS at (800) 829-4933 to check the status of your application.
The purpose of Form 2553 is to allow certain small businesses to choose to be taxed as an S corporation. This is often called making an S-election. The small businesses that can choose S corporation status include: Limited liability companies (LLC)
As an SMLLC (single-member limited liability company), taxes can be burdensome if one is paying taxes on all the profits that they receive from their company. However, IRS form 2553 can be filed, which would allow the SMLLC to reap the tax benefits of an S-Corp.
IRS Form 2553 does not have a filing fee, however, a business owner should be aware that there can be some other costs associated with electing to be taxed as an S Corp. For example, if the company is using business purpose to justify its fiscal year, it will incur a $5,800 fee following filing Form 2553.
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The annual tax for S corporations is the greater of 1.5% of the corporations net income or $800.
After filing Form 2553, the IRS will send either an acceptance or denial letter to the business within 60 days of filing. If the election is accepted, the letter will show the effective date. If you dont receive a letter within 60 days of filing Form 2553, then you should contact the IRS at 1-800-829-4933.
Form 2553, Election by a Small Business Corporation, cant be filed electronically. The form instructions state that the corporation needs to mail or fax the original copy of the form to the IRS. Refer to the IRS Instructions for Form 2553 for more information.

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