S-corp election: Form 2553, filed on time.
Once profit is steady, an S-corp election can lower the self-employment tax you pay. It also adds payroll, a separate return and a deadline. We check whether it fits, then file it right.
From $499, with a written quote first. Remote, nationwide, in English or Español. Vea esta página en español.
An S-corp election changes how your LLC or corporation is taxed, not how it is set up.
We handle the tax side: whether to elect, Form 2553 and what changes after. The legal side stays with your attorney, and we work with them when you need one.
What we do
- Your taxes both ways. With and without the election, counting a reasonable salary, payroll and the extra return.
- Check that you qualify. The IRS's basic rules: a domestic corporation or LLC, no more than 100 shareholders, one class of stock, and only eligible shareholders (a nonresident alien can't be one, for example).
- Prepare Form 2553. Every shareholder has to consent and sign, so we make sure nobody is missing.
- File it on time, and follow it. We file it and watch for the IRS letter that accepts the election.
- Set up what comes after. Payroll for your salary, the books and the next year's tax calendar.
The deadline
The IRS instructions for Form 2553 say to file it no more than 2 months and 15 days after the start of the tax year the election should take effect, or at any time during the year before. For a business on the calendar year, that usually means by March 15.
Missed it? The IRS has a procedure for late elections, and many businesses still qualify. We check yours before anything is filed.
What changes for your taxes
- A salary. You pay yourself a reasonable salary through payroll, with the usual payroll taxes.
- The rest of the profit. It passes through to your personal return, without self-employment tax on it.
- A return of its own. The business files Form 1120-S every year, and each owner gets a K-1.
The same firm prepares the 1120-S and helps you plan the year. Starting from scratch? See business formation. Tax preparation and IRS representation, with an Enrolled Agent on the team.
S-corp questions.
Will an S-corp lower my taxes?
It can, once profit is steady and high enough to pay yourself a reasonable salary. Below that, payroll, the extra return and their costs often outweigh what it saves. We won't promise a number: we show you your taxes both ways before you decide.
Can a single-member LLC elect S-corp?
Yes. An LLC that meets the IRS rules can be taxed as an S corporation by filing Form 2553. How the company is set up legally doesn't change, only how it is taxed.
What is a reasonable salary?
Roughly what you would pay someone else to do your job. The IRS expects owners who work in the business to pay themselves a salary before taking distributions. We help you set a figure you can explain.
I missed the deadline. What now?
Often it can still be fixed. The IRS has a procedure for late S-corp elections when certain conditions are met. We check whether yours qualifies and file it the right way.
What does it cost?
From $499 for the election: your taxes both ways, Form 2553 and the follow-up until the IRS accepts it. Payroll and bookkeeping are their own services. You get a written quote after the free call, before any work starts.
Do you give legal advice?
No. The election is a tax filing. Questions about your operating agreement, ownership or liability are for an attorney, and we work with yours when you need one.
Find out if the S-corp fits.
A free 15-minute call · Your taxes both ways · A written quote before any work