What form do I file to elect S-Corp status?

To elect S-Corporation tax status for your LLC, you must file Form 2553 (Election by a Small Business Corporation) with the IRS. This form must be signed by all members of the LLC.

How do I submit Form 2553 to the IRS?

Currently, the IRS does not allow you to file Form 2553 electronically through a standard web portal. You must print the form, sign it with ink, and then either fax it or mail it via certified mail to the appropriate IRS service center based on your state. We highly recommend faxing it so you get a confirmation receipt.

Can I backdate an S-Corp election to last year?

Generally, no. You cannot decide in April of 2026 to be an S-Corp for the 2025 tax year to save money retroactively. The election must be made by March 15 of the current tax year to apply to that year. However, late relief rules (Rev. Proc. 2013-30) can sometimes grant exceptions if you genuinely intended to operate as an S-Corp but failed to file the form on time due to a reasonable cause.

Do I need a new EIN after electing S-Corp status?

No. If your LLC already has an Employer Identification Number (EIN), you keep that exact same EIN when you elect S-Corp tax status. You simply report the change in tax classification on Form 2553 to the IRS.

How long does the IRS take to approve Form 2553?

The IRS typically takes 60 to 90 days to process Form 2553. They will mail you a formal acceptance letter (CP261 Notice). If you do not receive it within that timeframe, you should call the IRS Business Specialty Tax Line to check the status.

S-Corp Election Deadline: When and How to File Form 2553

If your LLC is generating significant profit, your CPA or accountant has likely recommended electing S-Corporation tax status. By taxing your business as an S-Corp, you can completely bypass the 15.3% self-employment tax on a large portion of your net profits, replacing it with a combination of W-2 salary and tax-free distributions.

However, the IRS is incredibly strict about when you can make this election. It is not an automatic right. If you miss the specific statutory deadline, your LLC will be taxed as a standard disregarded entity (or a partnership, if you have multiple members) for the remainder of the year, potentially costing you thousands in unnecessary taxes.

Let's dive into the exact deadlines you need to hit, the rules for new businesses, and what to do if you missed the window.

1. The Standard S-Corp Deadline (Existing LLCs)

If you have an existing LLC that has been operating for a while and you operate on a standard calendar tax year (January 1 to December 31, which applies to 99% of small businesses), the deadline to file Form 2553 for the current tax year is March 15.

In other words, you have the first two and a half months of the year to decide if you want to be treated as an S-Corp for that entire year.

For example, if you want your LLC to be taxed as an S-Corp for the 2026 tax year, the IRS must receive your Form 2553 no later than March 15, 2026.
If you file the form on March 16, 2026 (without claiming late relief), the election will not take effect until January 1, 2027. You will be stuck paying standard LLC taxes for all of 2026.

Note: If March 15 falls on a Saturday, Sunday, or legal holiday, the deadline is pushed to the next business day.

2. The "2 Month and 15 Day" Rule for New LLCs

What if you form a brand new LLC in the middle of the year? If you start an LLC in August, you obviously missed the March 15 deadline for that year.

For newly formed LLCs, the IRS gives you exactly 2 months and 15 days from your official date of formation to file Form 2553 and have it apply retroactively to your very first day of business.

If your LLC was approved by your state's Secretary of State on June 1...
You count forward 2 months (to August 1), and then add 15 days...
Your deadline to file Form 2553 is August 15.

If you meet this 2 month and 15 day deadline, your S-Corp status will be effective from June 1, meaning your entire lifespan as a business will be taxed under S-Corp rules.

Forming in Late December

If you form your LLC very late in the year (e.g., November or December), many founders choose NOT to elect S-Corp status immediately. Instead, they operate as a standard LLC for a month, and then file the S-Corp election to take effect on January 1 of the following year. This avoids the headache of running payroll and filing a complex corporate tax return (Form 1120-S) for a "short year" of only a few weeks.

3. Late Election Relief (Rev. Proc. 2013-30)

If you missed the March 15 deadline or the 2 month/15 day window, don't panic. The IRS recognizes that small business owners are busy and frequently miss this deadline. To alleviate the burden, they established a very generous late relief program under Revenue Procedure 2013-30.

You can request late relief and backdate your S-Corp election to the beginning of the year if you meet ALL of the following criteria:

You intended to be classified as an S-Corp as of the intended effective date.
You operated your business as if it were an S-Corp (meaning you filed the correct tax returns, or will file them on time, and you ran payroll for yourself).
You have "reasonable cause" for failing to file Form 2553 on time (e.g., "Taxpayer's accountant failed to file the form" or "Taxpayer was unaware of the deadline").
It has been less than 3 years and 75 days since the intended effective date of the election.

How to claim it: You file Form 2553 normally, but at the very top of the form, you must write "FILED PURSUANT TO REV. PROC. 2013-30". You must also fill out Part II of the form, providing your explanation for the reasonable cause.

4. How to Properly File Form 2553

Filing the form is surprisingly old-school. Despite modern technology, you cannot simply e-file Form 2553 via a web portal.

Step 1: Download and Fill. Download Form 2553 from IRS.gov. Fill in your LLC's exact legal name, EIN, address, and the specific effective date you want the election to begin. Be precise.

Step 2: Sign in Ink. The IRS requires "wet" signatures. An authorized officer must sign the bottom of page 1. Additionally, all shareholders (LLC members) must sign and date the consent section in Part I. If you live in a community property state (like TX, CA, NV, AZ, WA, ID, NM, LA, WI), your spouse must also sign the form consenting to the election, even if they aren't active in the business.

Step 3: Fax or Mail. The IRS provides specific fax numbers and mailing addresses on the instructions for Form 2553, which vary depending on your state. We highly recommend faxing it. If you fax it, you will receive a transmission confirmation receipt from your fax machine or digital fax service. Keep this receipt in your permanent files! The IRS often loses forms, and this receipt proves you filed on time. If you must mail it, use USPS Certified Mail with a Return Receipt.

5. When Should You Elect S-Corp Status?

Just because you can elect S-Corp status doesn't mean you should. Operating an S-Corp comes with extra administrative burdens and hard costs:

You must run official payroll for yourself (costing $40–$100/month for software like Gusto).
You must file a separate corporate tax return (Form 1120-S) by March 15 every year, which CPAs often charge $800–$1,500+ to prepare.
You must pay employer-side payroll taxes on your salary, and deal with unemployment insurance registrations.
You may face higher state franchise taxes depending on your state (e.g., California's 1.5% tax on S-Corp net income).

As a general rule of thumb, most accountants recommend waiting until your LLC generates at least $50,000 to $80,000 in net profit before electing S-Corp status. Below that threshold, the administrative costs and accounting fees will outweigh the tax savings.

6. State S-Corp Elections

Finally, be aware that while filing Form 2553 covers your federal taxes, some states do not automatically conform to the federal S-Corp election. States like New York and New Jersey require you to file a separate, state-specific S-Corp election form.

If you live in a state that requires a separate election and you fail to file it, you will be treated as an S-Corp federally, but as a standard LLC at the state level, creating an accounting nightmare. Always verify your specific state's rules with a local tax professional.

S-Corp Election Deadline: When and How to File Form 2553 (2026 Guide)