You have done the maths and decided the election is worth it. Now comes the part people actually trip over: the paperwork. The S corp election itself is a single IRS form, but it has strict eligibility requirements and a deadline that catches out thousands of owners every year. This guide is about the process — who can file Form 2553, how to fill it in, where it goes, what to do if you are late, and what the whole thing really costs. If you are still deciding whether it saves you money, start with our LLC vs S corp comparison, which runs the numbers.
Table of Contents
Who can make the S corp election
Before you touch the form, check your LLC against the IRS rules. To be taxed as an S corporation, the business must:
- Be a domestic US business.
- Have no more than 100 shareholders. For an LLC, read “shareholders” as members; spouses and certain family members can count as one.
- Have only one class of stock. For an LLC this means every member’s rights to profits and payouts must match their ownership share — no special deals that pay one member ahead of the others.
- Have owners who are US individuals, certain trusts, or estates. No nonresident aliens, no partnerships, and no other companies as owners.
Most small LLCs pass these tests easily. The one-class rule is the one to watch in multi-member companies: if your operating agreement gives members different payout rights, get it reviewed before filing. Our guide to single vs multi-member LLCs explains how member setups differ.
One point that confuses owners: filing Form 2553 also counts as electing to be treated as a corporation for tax purposes, so most LLCs do not need to file a separate Form 8832 first.
S corp election deadlines for 2026 and 2027
The rule is short: Form 2553 must reach the IRS no more than 2 months and 15 days after the start of the tax year the election is to cover.
- Existing calendar-year LLC, election for 2026: the deadline was March 16, 2026 — the usual March 15 date fell on a Sunday.
- Election for 2027: file by March 15, 2027, or at any point during 2026. Filing early in the year before is the safest move.
- Brand-new LLC: you get 2 months and 15 days from your formation date for the election to count from day one.
- Fiscal-year businesses: count 2 months and 15 days from the start of your fiscal year instead.
Miss the window without relief and the S corp election starts the following tax year, while your current year stays under default LLC taxation. The IRS guidance on LLC classification and the S corporation election confirms how the election fits with your default status.
How to fill in Form 2553, step by step
The form is four pages, but most LLCs only complete Part I. Work through it in this order:
- Get your EIN first. The form asks for the company’s employer identification number. If your LLC does not have one, apply on the IRS website — it is free and takes minutes.
- Part I, company details. Enter the LLC’s legal name, address, EIN, state of organization and the date it was formed.
- Line E — the effective date. Write the date you want S corp treatment to start, usually January 1 of the current or coming year. This date drives the deadline and any late-relief claim, so get it right.
- Line F — tax year. Most small LLCs select the calendar year. Choosing a fiscal year takes you into Part II and needs a business reason.
- Shareholder information and consent. List every member: name, address, tax ID number, ownership share, and the date they acquired it. Every member must sign the consent statement in Part I. Missing one signature is the most common reason elections get rejected or delayed. In S corp terms this is called shareholder consent, and the IRS takes it seriously.
- Parts II, III and IV. Skip Part II unless you want a fiscal year. Part III is only for QSST trusts. Part IV is for late elections — see the next section.
- Sign and send. An authorized member signs the form. You cannot e-file it: mail or fax it to the IRS service center listed in the form instructions for your state, and keep a copy plus proof of sending. Certified mail with return receipt is cheap insurance.
- Watch for the reply. The IRS sends notice CP261 when the election is accepted, usually within about 60 days. If it is refused, notice CP264 explains why. Keep the acceptance notice with your company records for good — banks and accountants ask for it years later.
Missed the deadline? Late election relief
The IRS knows owners miss this deadline, so it built a safety net: Rev. Proc. 2013-30. Under it, you can still get the S corp election backdated if:
- You meant the election to apply from the effective date on the form.
- The only problem is that the form was filed late — your LLC met the eligibility requirements all along.
- You have reasonable cause for filing late, such as relying on an accountant who failed to file, and you acted quickly once you spotted the mistake.
- You and every member have filed tax returns consistent with S corp treatment for the period, or you correct them.
- You file within 3 years and 75 days of the intended effective date.
To claim it, write “FILED PURSUANT TO REV. PROC. 2013-30” across the top of Form 2553 and attach a signed statement explaining the reasonable cause. File it on its own or with your first Form 1120-S. Wait too long — past the 3 years and 75 days — and the remaining route is a private letter ruling, which means an IRS user fee and a much longer wait.
What the S corp election really costs
The S corp election costs nothing to request. Filing Form 2553 itself is free — the IRS charges nothing. The real costs start the day the election takes effect:
- Payroll. You must run proper payroll for your reasonable salary, with withholding and quarterly Form 941 filings. A payroll service typically runs about $40 to $60 a month for a one-person company. The salary rule matters — our guide on how to pay yourself from an LLC explains how owners take money out under each system.
- A second tax return. The business now files Form 1120-S each year on top of your personal return. Accountants usually charge noticeably more for it than for a Schedule C.
- State costs. Some states add their own franchise tax or minimum tax on S corps, and a few do not follow the federal election at all. Check your state before filing.
- Your time. Payroll deadlines, annual filings and state reports join the calendar. Our guide to LLC annual report deadlines shows how to keep them all in one place.
For the full picture of what changes at tax time, see our guide to LLC taxes. Weigh these running costs against the self-employment tax you will save — that comparison, not the free form, is the real decision.
Frequently asked questions
Does the S corp election change my LLC into a corporation?
No. Your LLC stays an LLC under state law, with the same Articles of Organization and annual state filings. The election only changes how the IRS taxes the business.
Can a single-member LLC make the S corp election?
Yes. A one-owner LLC files the same Form 2553, lists itself as the only shareholder, and signs the consent. Single-member LLCs are among the most common filers.
I missed the March deadline. Is the election lost for this year?
Not necessarily. Rev. Proc. 2013-30 lets you request late election relief within 3 years and 75 days of the intended effective date if you had reasonable cause and everyone filed consistently with S corp treatment. Without relief, the election starts next year.
How long does the IRS take to confirm the election?
Around 60 days in most cases. Acceptance arrives as notice CP261; a refusal comes as CP264 with the reason. If nothing arrives after 60 days, call the IRS business line and ask for confirmation before you run payroll as an S corp.
Disclaimer: this article is for general information only and is not tax advice. Election rules and deadlines are strict — confirm your dates and eligibility with a qualified tax professional before filing Form 2553.
