What is Form 2553 used for?

Form 2553 elects federal S corporation status under Subchapter S so income and losses pass through to shareholders. The form records entity identity, shareholder consent, effective date, and officer certification required by the IRS.

If filed late, you may request relief under IRS procedures for late S elections when reasonable cause exists. Relief requires a clear explanation and supporting documentation to show why timely filing was not possible.

Who must sign the form?

An officer, such as the president or authorized representative, must sign and date the form. Shareholders must provide written consent either on the form or in attached statements as required to validate the election.

Is notarization required?

No. IRS Form 2553 does not require notarization. Keep signed originals in corporate records; states may have separate rules for related corporate documents but not for the IRS election itself.

Can an LLC file Form 2553?

Yes, a single-member or multi-member LLC that elects to be treated as a corporation for tax purposes can subsequently elect S status by filing Form 2553, provided it meets the eligibility criteria for S corporations.

How long does processing take?

Processing times vary; the IRS will notify if accepted or if additional information is required. Retain evidence of the filing date and copies of shareholder consents to support the election if questions arise.

Electronic Signature
Templates
Miscellaneous
Business Document 2553

Business Document 2553

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS DOCUMENT 2553

This Business Agreement ("Agreement") is made and entered into as of the Effective Date: , by and between the parties identified below.

Parties

Party A (First Party) - Legal Entity Name Party A Address Party B (Second Party) - Legal Entity Name Party B Address

WHEREAS

WHEREAS, Party A is engaged in the business of providing certain commercial services and has requested that Party B perform defined services under the terms and conditions set forth in this Agreement; and

WHEREAS, Party B represents that it has the professional expertise, personnel, and resources necessary to perform the services described in this Agreement and is willing to perform such services for Party A in accordance with the terms herein; and

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth below, the parties agree as follows.

SCOPE OF WORK

Party B shall perform the services and deliverables described below (collectively, the "Services"). Services shall be provided in a professional and workmanlike manner consistent with industry standards.

Detailed Scope of Work

PAYMENT TERMS

In consideration for the Services, Party A will pay Party B the amounts specified below in accordance with the schedule and conditions set forth in this section.

Total Contract Amount Payment Schedule / Milestones

Invoices shall be submitted by Party B and are due and payable within days of receipt. Payments not received by the due date shall accrue interest at the rate of on the outstanding balance, compounded monthly, plus all costs of collection, including reasonable attorneys' fees.

TERM AND TERMINATION

This Agreement shall commence on the Commencement Date: , and shall continue until the Termination Date: , , unless earlier terminated in accordance with this Agreement.

Either party may terminate this Agreement for convenience upon days' prior written notice to the other party. Either party may terminate this Agreement immediately upon written notice if the other party materially breaches any obligation under this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice specifying the breach.

CONFIDENTIALITY

Each party (the "Receiving Party") shall keep confidential and shall not disclose to any third party any Confidential Information of the other party (the "Disclosing Party") except as required to perform under this Agreement. "Confidential Information" means non-public business, technical, or financial information disclosed orally, in writing, or by inspection that is identified as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

The obligations of confidentiality do not apply to information that (a) was known to the Receiving Party prior to disclosure by the Disclosing Party without an obligation of confidentiality; (b) is or becomes publicly available through no fault of the Receiving Party; (c) is rightfully received from a third party without breach of any obligation of confidentiality; or (d) is independently developed by the Receiving Party without use of the Disclosing Party's Confidential Information. Upon termination of this Agreement, the Receiving Party shall promptly return or destroy all Confidential Information of the Disclosing Party and certify such return or destruction in writing upon request.

REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has the full power and authority to enter into this Agreement and to perform its obligations hereunder, and that the execution and delivery of this Agreement and the performance of its obligations will not violate any agreement, law, or regulation applicable to it.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles. The parties submit to the exclusive jurisdiction of the state and federal courts located in that State for the resolution of disputes arising under this Agreement.

MISCELLANEOUS

Assignment: Neither party may assign or transfer this Agreement or any rights hereunder without the prior written consent of the other party; provided, however, that either party may assign this Agreement in connection with a merger, acquisition, or sale of substantially all of its assets without the other's consent upon notice to the other party.

Amendments: No amendment or modification of this Agreement will be effective unless in writing and signed by authorized representatives of both parties.

ENTIRE AGREEMENT

This Agreement, including any schedules or exhibits attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the parties.

NOTICES

All notices required or permitted under this Agreement must be in writing and delivered to the addresses provided above or to such other address as either party may designate by notice in accordance with this section. Notices shall be deemed given upon personal delivery, three (3) days after deposit in the U.S. mail, or one (1) business day after delivery to a nationally recognized overnight courier service.

Party A:

By:

Date:

Party B:

By:

Date:

What Business Document 2553 Is and when it applies

Business Document 2553 refers to IRS Form 2553, Election by a Small Business Corporation, used by eligible corporations and certain LLCs to elect S corporation status for federal tax purposes. Filing notifies the Internal Revenue Service that the entity chooses pass-through taxation under Subchapter S so income, losses, deductions, and credits flow to shareholders. The form captures entity identification, shareholder information, tax year election, and signatures. Timely submission and complete shareholder consent are required for the election to take effect for a given tax year.

Why the S election matters for small businesses

Electing S corporation status with Business Document 2553 can enable pass-through taxation, may reduce certain self-employment taxes for active owners, and clarifies shareholder income allocation. The election changes federal tax treatment and impacts payroll and distribution reporting, so accuracy and timing are essential.

Who commonly files Business Document 2553

Business Document 2553 is used by closely held corporations and eligible LLCs electing S status; it suits entities that meet shareholder limitations and other IRS requirements.

C corporations with 100 or fewer eligible shareholders that want pass-through taxation
Newly formed entities electing S status effective from formation date
LLCs electing corporate taxation then choosing S status via IRS rules

Confirm all eligibility criteria, secure written shareholder consents, and select the correct effective date before filing to avoid default C-corporation treatment.

Primary users preparing this election

Small Business Owner

Owners of closely held companies who want to avoid double taxation and pass corporate income through to shareholders. They must confirm eligibility, obtain written shareholder consents, and understand payroll versus distributions before filing to ensure the election is valid for the intended tax year.

Corporate Tax Manager

In-house tax professionals responsible for preparing and filing the election, reconciling shareholder bases, and coordinating with payroll providers. They verify stock classes, shareholder eligibility, effective dates, and retain documentation to support the company’s S corp election in case of IRS inquiries.

Essential information required on Business Document 2553

Entity Name: Legal name exactly as on formation documents

EIN: Employer Identification Number (nine digits)

Effective Date: MM/DD/YYYY effective date shown

Shareholder Consent: Signed consent from eligible shareholders

Tax Year Ending: Selected tax year and accounting period

Officer Signature: Authorized officer signature and title

Principal risks when the election is incorrect

Late Filing: Election may be void; C-corp tax applies

Incorrect Information: IRS may reject or request clarification

Missing Consents: Shareholder consent omission invalidates election

Tax Liability: Potential higher corporate tax obligations

Payroll Impact: Salaries vs distributions audit risk

Amendment Limits: Relief requires IRS approval

Common preparation mistakes to avoid

Submitting after the deadline without a valid late-election relief request often results in the entity being taxed as a C corporation for the intended year.
Failing to obtain written consent from every eligible shareholder, including prior owners where required, can void the election and trigger IRS follow-up.
Listing ineligible shareholders, such as nonresident aliens or certain trust types, disqualifies S status and may require corrective filings.
Using the wrong effective date or misreporting the tax year can cause mismatches with payroll and estimated tax obligations, complicating returns.

Step-by-step: prepare and file Business Document 2553

Follow this sequential checklist to prepare and file Business Document 2553 accurately and on time.

01

Confirm Eligibility: Verify shareholder count, citizenship, and stock class rules.
02

Gather Consents: Collect signed shareholder consents with dates and signatures.
03

Complete Form: Enter EIN, entity name, effective date, and officer info.
04

File with IRS: Mail or e-file per IRS instructions and keep proof.

Where to send the completed form and retain records

After completion, the form must be delivered to the IRS and retained with corporate records; mailing and electronic options differ in processing and proof of filing.

Mail to IRS: Send to the address listed in the IRS Form 2553 instructions.
Fax or e-file: Follow current IRS instructions for fax or electronic submission if available.
Retain Copy: Keep a signed copy for corporate records and shareholder files.
Notify Shareholders: Provide copies and record consent in the corporate minute book.

Field	Configuration
Authentication	Email and SMS two-factor verification
Signature Type	Typed name or drawn signature with audit trail
Required Fields	EIN, entity name, effective date, shareholder consent
Storage Format	PDF/A archived with tamper-evident audit log
Notifications	Automated copies to signers and corporate admin

Platform capabilities to support filing and recordkeeping

Use an eSignature platform compliant with ESIGN and UETA, employing TLS/AES encryption and a complete audit trail for Business Document 2553.

Formats Supported: PDF, DOCX, HTML, Excel
Integrations: NetSuite, Salesforce, Google Workspace
Authentication: Email, SMS, KBA, SSO options

Important timing rules and filing deadlines

Key filing dates and timing rules determine the effective tax year and whether late-election relief may be available for Business Document 2553.

Election Effective Date:

Enter desired effective date on the form; IRS treats dates according to rules.

Timely Filing Rule:

Generally file within two months and 15 days after the start of the tax year for same-year effectiveness.

Late Election Relief:

IRS may grant relief if reasonable cause is shown; procedures exist to request relief.

Shareholder Consent Deadline:

Consents should be on file or attached when the election is submitted to the IRS.

Recordkeeping:

Retain signed form and evidence of filing with corporate records.

Key sections included on Business Document 2553

The form is organized to capture entity identity, shareholder information, election timing, and the officer declaration needed to validate the S election.

Entity Info

Provide the legal entity name, address, state of incorporation, and EIN exactly as registered. Discrepancies with formation documents or IRS records can delay processing or prompt follow-up.

EIN

Enter the nine-digit Employer Identification Number assigned by the IRS. An incorrect EIN prevents acceptance and may require corrected filings, delaying the election’s effective date.

Effective Date

Specify the desired effective date for S status using MM/DD/YYYY format. This date affects the tax year and whether the election applies to the current or subsequent tax year.

Shareholder Info

List each shareholder’s name, address, tax identification number, ownership percentage, and signature or attach written consent demonstrating approval of the election.

Tax Year

Choose the tax year and, if selecting a fiscal year, include any required explanation or consents under IRS rules for fiscal-year elections.

Officer Declaration

An officer or authorized representative must sign and date the form, certifying accuracy of information and that shareholder consents are on file.

Selected eSignature plan comparison for preparing Business Document 2553

The table summarizes common plan and feature dimensions across vendors to help evaluate eSignature options for collecting and storing Business Document 2553; signNow appears first per platform data.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Free trial available	Free trial available	Free trial available	Free trial available
Bulk Send	Yes (Premium)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	No cap	No cap	No cap

Frequently asked questions about Business Document 2553

Answers to common questions about eligibility, timing, signatures, and late filings to help avoid processing issues with the IRS election form.

Need help? Contact support

What is Form 2553 used for?
Form 2553 elects federal S corporation status under Subchapter S so income and losses pass through to shareholders. The form records entity identity, shareholder consent, effective date, and officer certification required by the IRS.
What if I file late?
If filed late, you may request relief under IRS procedures for late S elections when reasonable cause exists. Relief requires a clear explanation and supporting documentation to show why timely filing was not possible.
Who must sign the form?
An officer, such as the president or authorized representative, must sign and date the form. Shareholders must provide written consent either on the form or in attached statements as required to validate the election.
Is notarization required?
No. IRS Form 2553 does not require notarization. Keep signed originals in corporate records; states may have separate rules for related corporate documents but not for the IRS election itself.
Can an LLC file Form 2553?
Yes, a single-member or multi-member LLC that elects to be treated as a corporation for tax purposes can subsequently elect S status by filing Form 2553, provided it meets the eligibility criteria for S corporations.
How long does processing take?
Processing times vary; the IRS will notify if accepted or if additional information is required. Retain evidence of the filing date and copies of shareholder consents to support the election if questions arise.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now