Which form do I file to elect S status?

File IRS Form 2553 to make a federal S election. Complete all required parts, including shareholder consents, and follow the timing rules on the form’s instructions.

When will the election take effect?

If filed within two months and 15 days after the start of the tax year, the election generally takes effect for that tax year; otherwise specify the intended effective date per IRS guidance.

Can an LLC be an S corporation?

Yes, a qualified LLC can elect S treatment if it meets shareholder and entity requirements; members must consent and tax classification rules must be satisfied.

What if I miss the filing deadline?

The IRS allows late election relief in many cases if reasonable cause is shown; consult IRS guidance or a tax professional to pursue relief.

Does the election affect state taxes?

State recognition of S status and tax treatment vary; some states impose franchise or entity-level taxes despite federal S classification.

Are electronic signatures valid for Form 2553?

Electronic signatures can be valid if they meet the ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA requirements, and if the platform preserves intent, consent, attribution, and record retention.

Electronic Signature
Templates
Tax
Tax S Corporation Election

Tax S Corporation Election

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

Tax S Corporation Election

Corporation Identification

Corporate Name: Business Name (if different): Employer Identification Number (EIN): Principal Business Address:

State of Incorporation

Date Incorporated

Entity Type

Indicate the corporation's current federal tax classification. Check all that apply where applicable; all entries are subject to certification below.

Individual / Sole Proprietor C Corporation S Corporation Partnership Trust / Estate LLC Other

Tax Year and Election Effective Date

Tax year for which the election is to be effective:

Tax year begins on and ends with month

Effective date of S election:

Taxpayer Identification

Provide the taxpayer identification number that applies to this corporation.

Social Security Number (if applicable): Employer Identification Number (EIN):

Shareholder Information and Consent

List all shareholders who hold stock at the time the election is filed or who acquire stock before the effective date. Each listed shareholder must consent to the election; indicate consent by checking the box beside the shareholder name.

Shareholder 1 — Name and Consent Consent to S election: Shareholder 1 SSN or TIN: Address:

Date Acquired:

Shareholder 2 — Name and Consent Consent to S election: Shareholder 2 SSN or TIN: Address:

Date Acquired:

Shareholder 3 — Name and Consent Consent to S election: Shareholder 3 SSN or TIN: Address:

Date Acquired:

Shareholder 4 — Name and Consent Consent to S election: Shareholder 4 SSN or TIN: Address:

Date Acquired:

Shareholder 5 — Name and Consent Consent to S election: Shareholder 5 SSN or TIN: Address:

Date Acquired:

Shareholder 6 — Name and Consent Consent to S election: Shareholder 6 SSN or TIN: Address:

Date Acquired:

Certification and Perjury Statement

All statements below must be true and correct. The officer signing this election must have authority to bind the corporation and must certify the facts under penalties of perjury.

I certify the following:

1. The corporation meets the requirements for election under Subchapter S and has no more than 100 shareholders or other disqualifying characteristics.

2. All persons listed as shareholders on this form are eligible shareholders under Subchapter S and have consented to the election to be treated as an S corporation effective on the date indicated above.

3. There is only one class of outstanding stock, or the corporation meets the definition of a permissible multiple-class arrangement under applicable law and regulations.

4. The corporation has filed this election timely for the taxable year specified and understands that late elections may require additional statements or relief under applicable rules.

5. All information provided on this election, including shareholder names, addresses, social security numbers or taxpayer identification numbers, and ownership percentages, is true, correct, and complete.

Under penalties of perjury, I declare that I have examined this election and accompanying statements, and to the best of my knowledge and belief they are true, correct, and complete.

Officer Signature and Contact

The officer signing below certifies authority to execute this election on behalf of the corporation.

Officer Printed Name:

Title:

Signature:

Date Signed:

Daytime Telephone:

What the Tax S Corporation Election Is and when it applies

The Tax S Corporation Election is the formal choice by an eligible domestic corporation or qualified LLC to be taxed under Subchapter S of the Internal Revenue Code. To make the election you file IRS Form 2553 with the Internal Revenue Service and secure written consent from all shareholders or eligible members. The election changes federal income taxation so income, losses, deductions and credits generally pass through to shareholders instead of being taxed at the corporate level. State tax treatment and administrative steps vary by jurisdiction.

Why entities consider making an S Corporation Election

Electing S corporation status offers pass-through federal taxation that can avoid double taxation at the corporate level, preserve qualified business income deductions for owners, and provide payroll tax planning opportunities for owner-employees while preserving limited liability status.

Which businesses typically file a Tax S Corporation Election

Common users include small to mid-sized corporations and eligible LLCs seeking pass-through taxation and owner-employee payroll flexibility.

Small C corporations converting to pass-through taxation to avoid double taxation and streamline distributions.
Single-member or multi-member LLCs electing S status for tax advantages while retaining limited liability.
Tax advisors and accountants preparing timely elections and documenting shareholder consents.

Core elements included in a professional Tax S Corporation Election

A complete election package documents entity identity, shareholder consent, effective dates, and signature authentication to meet IRS requirements and support state tax reporting.

Form 2553

Complete IRS Form 2553 accurately; it is the primary federal filing used to notify the IRS of an S election and to set the election effective date.

Effective Date

Specify the election effective date on Form 2553. The IRS requires filing by specific timing rules to make the election effective for a given tax year.

Shareholder Consent

Obtain written consent from each shareholder (or member treated as shareholder) as required by the instructions to Form 2553 and retain those consents for the corporate record.

Entity Identifiers

Provide the legal entity name, employer identification number (EIN), formation date, and state of incorporation or organization as shown on official records.

Fiscal Year Choice

If not using the calendar year, document a valid fiscal year and any IRS approval or tax-year limitations applicable to S corporations.

Signature Authentication

Ensure an authorized officer signs the form and that the signature is attributable to the signer; electronic signatures are acceptable when compliant with ESIGN/UETA.

Step-by-step: preparing and filing your S election

Follow a clear sequence to confirm eligibility, prepare Form 2553, collect consents, and submit to the IRS for processing.

01

Confirm eligibility: Verify domestic entity, eligible shareholders, and single class of stock.
02

Complete Form 2553: Enter entity data, choose effective date, and complete applicable parts.
03

Collect consents: Obtain written consents from all shareholders with required dates.
04

File with IRS: Mail or e-submit per IRS instructions within required timeframe.

Overview of the filing and confirmation workflow

A typical workflow moves from eligibility checks to document completion, shareholder signatures, submission, and IRS acknowledgement.

Prepare documents: Draft Form 2553 and supporting consents.
Signatures: Collect signatures and verify signer identity.
Submit to IRS: Send Form 2553 according to IRS filing instructions.
Retain records: Keep the filed copy and shareholder consents in corporate records.

Configuring an online workflow for the S election

When using an e-submission workflow, configure fields, signer roles, authentication, storage, and notifications to match IRS and corporate recordkeeping needs.

Field	Configuration
Entity Fields	Lock legal-name and EIN fields to prevent changes
Signer Roles	Assign officer and shareholder signer roles explicitly
Authentication	Enable email plus SMS or knowledge-based auth as needed
Storage Location	Archive signed documents to secure cloud or corporate DMS

Technical considerations for electronic signing and e-submission

Choose a platform that supports ESIGN/UETA legal standards, audit trails, secure storage, and required integrations.

Audit Trail: Timestamps, IP, and action history
Integrations: CRM, NetSuite, or cloud storage connectors
Security: TLS and AES-256 encryption

Key timing rules and filing windows for an S election

Timely filing determines when the election takes effect; use IRS timing rules to select the correct effective tax year.

Standard filing window:

File within two months and 15 days after tax year start

Prior-year filing option:

File during the prior tax year to be effective on year start

Late election relief:

IRS relief may apply if reasonable cause is shown

Shareholder consent timing:

Consents must be dated on or before the election date

No IRS filing fee:

IRS does not charge a fee to file Form 2553

Milestones from decision to IRS acknowledgement

A sequential view helps track required actions from internal decision through IRS processing and record retention.

01

Decision and planning

Board or owners approve election and tax strategy

02

Form completion

Prepare Form 2553 and collect shareholder data

03

Signature collection

Gather written consents from all shareholders

04

Submission and retention

File with IRS and store the signed record in corporate files

Common preparation mistakes to avoid

Missing or incorrect EIN entries leading to IRS processing errors and delays.
Failure to secure consent from every required shareholder before filing Form 2553.
Choosing an improper effective date by missing the two months and 15 days window.
Not aligning state tax registrations and filings after the federal election is accepted.

Potential risks and administrative consequences

Loss of S status: Default or ineligibility can revoke pass-through taxation

Tax liability: Incorrect payroll classification can trigger tax assessments

Filing delays: Late or rejected elections delay tax treatment

State audits: State tax differences may prompt examinations

Recordkeeping gaps: Missing consents impair audit defense

Penalties: Late payroll or information filing penalties

Security and compliance considerations for electronic elections

ESIGN / UETA: Supports binding electronic signatures

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest

Audit Trail: Detailed timestamps and signer attribution

HIPAA BAA: BAA available where healthcare data is involved

21 CFR Part 11: Capabilities for regulated records where required

SOC 2 / ISO: SOC 2 Type II and ISO 27001 compliance

eSignature vendor pricing snapshot for S election workflows

Compare headline pricing and a few product features that commonly matter when managing Form 2553 and shareholder consents electronically.

	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	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about the Tax S Corporation Election

Answers to common questions on eligibility, timing, signatures, state impacts, and electronic filing to help avoid delays and errors.

Need help? Contact support

Which form do I file to elect S status?
File IRS Form 2553 to make a federal S election. Complete all required parts, including shareholder consents, and follow the timing rules on the form’s instructions.
When will the election take effect?
If filed within two months and 15 days after the start of the tax year, the election generally takes effect for that tax year; otherwise specify the intended effective date per IRS guidance.
Can an LLC be an S corporation?
Yes, a qualified LLC can elect S treatment if it meets shareholder and entity requirements; members must consent and tax classification rules must be satisfied.
What if I miss the filing deadline?
The IRS allows late election relief in many cases if reasonable cause is shown; consult IRS guidance or a tax professional to pursue relief.
Does the election affect state taxes?
State recognition of S status and tax treatment vary; some states impose franchise or entity-level taxes despite federal S classification.
Are electronic signatures valid for Form 2553?
Electronic signatures can be valid if they meet the ESIGN Act (15 U.S.C. ch. 96) and applicable state UETA requirements, and if the platform preserves intent, consent, attribution, and record retention.

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