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Instructions: How to fill out Form 2553

Note: You can cross-reference any information listed below with the IRS’s Form 2553 instructions. As mentioned earlier, we recommend you work with an accountant on electing to have your LLC taxed as an S-Corporation. Besides filing Form 2553, you also need to take payroll, file payroll tax returns, file a corporate return for your S-Corporation (Form 1120S), and manage your books.

Additionally, the instructions below are for an LLC electing to be taxed as an S-Corp (not a Corporation electing to be taxed as an S-Corp).

Get started:
Download IRS Form 2553 and save to your computer.

If you’d also like to download a completed sample form, please download this file as well: LLC taxed as S-Corp Form 2553 example

Part 1 – Election Information

Name:
Enter your complete LLC name in this section.

Employer Identification Number (A):
Enter your LLC’s EIN Number in this section. You’ll need an EIN in order to make the S-Corporation tax election.

Street Address and City, Town, Zip:
Enter the street or mailing address for your LLC. This can be the same address you used when you applied for your EIN, but it doesn’t have to be. If this is an updated address you’re using with the IRS, check off the “address box” in D.

Date incorporated (B):
Enter the date your LLC was formed. You can find this date on your stamped and approved Articles of Organization (or Certificate of Organization or Certificate of Formation) or by searching your LLC name on your state’s LLC name search database.

State of incorporation (C):
Enter the state where you formed your LLC.

D (Changes):
If you’re using a new address with the IRS, check off the “address” box. If you’ve changed your LLC name with the state since forming your LLC, check off the “name” box.

E (Election is to be effective):
Enter the tax year that you’d like your LLC to be taxed as an S-Corp. For example, if you’d like your LLC to be taxed as an S-Corp in the 2018 tax year, enter “01/01/2018”.

F (Selected tax year):
Choose your tax year. Most filers check off the first box for “Calendar year”.

G (Treating members of a family as one shareholder):
This section applies if your LLC has more than 100 members (also known as your S-Corporation having more than 100 shareholders). If your S-Corporation has more than 100 shareholders, please review the instructions. For most filers, their S-Corporations do not have more than 100 shareholders, so this box will be left unchecked.

H (Name and title of officer):
Enter your contact information and title in case the IRS has any questions. For example, you can enter “John Doe, Member” or “John Doe, Owner”.

I (Phone number):
Enter your cell, office, or home telephone number.

Multi-line explanation section:
This multi-line section is only needed if you are making a late S-Corp election (after the due date). If that’s the case, you need to include a reason, and often, the IRS is fairly flexible on accepting Form 2553 after the deadline.

A common strategy to use is the “blame the accountant” method. Here’s example text you could use: “LLC intended to make the S-election. Accountant did not provide the recommendation on time.

Signature, Title and Date:
Enter “Member” or “Owner” for the title, and the date which you are completing the form. After you print the form, make sure to sign it.

Part 1 – Election Information (continued) [page 2]

On page 2 you are going to list all of your LLC owners.

In column J, you’re going to list each person’s full name and address.

In column K, you’re going to have each person sign and enter today’s date.

In column L, you’re going to list the percentage of ownership and the date which the ownership was acquired. If you have 1 member in your LLC, the percentage would be 100%. If you have 2 members in your LLC, each person would enter 50%. For the date acquired, you can use the date your LLC was formed (which you also entered in box B).

In column M, list each person’s Social Security Number.

In column N, enter each person’s calendar year. This will be “12/31”.

For most filers, there is nothing else you need to do with the form. You can skip ahead to the mailing/fax instructions.

Part 2 – Selection of Fiscal Year (O, P, Q, and R):
This section does not apply to most filers, so they leave everything blank, however make sure to review your filing and speak to your accountant if anything in this section needs to be completed.

Part 3 – Qualified Subchapter S Trust (QSST):
This section does not apply to most filers, so they leave everything blank, however make sure to review your filing and speak to your accountant if anything in this section needs to be completed.

reference https://www.llcuniversity.com/irs/llc-taxed-as-s-corp-form-2553/

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