Electing S corp status: Form 2553 and the deadline

Who can elect

• A domestic corporation, or an LLC that can be taxed as a corporation.
• No more than 100 shareholders. A married couple counts as one.
• Only eligible shareholders: individuals, estates, certain trusts and exempt organizations. No nonresident aliens.
• One class of stock. Differences in voting rights do not count.
• Every shareholder consents. If an owner and a spouse have a community interest in the stock or its income, both consent.

A one-owner LLC passes these tests. It files Form 2553 and nothing else: an LLC that files a valid Form 2553 is treated as a corporation from the date the election takes effect and does not also file Form 8832. LLC vs. S corp explains what that changes.

The deadline

File Form 2553 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 calendar-year business, that means filing during 2026 or by March 15, 2027 for the election to take effect in 2027.

How to file

• Use Form 2553 (Rev. December 2017) with its instructions (Rev. December 2020).
• Each shareholder signs the consent column.
• Mail the original, not a photocopy, or fax it to the IRS service center the instructions list for your state.
• There is no IRS fee. A $6,200 user fee applies only to a box Q1 request for a fiscal tax year based on a business purpose.

If you missed the deadline

The IRS grants late-election relief under Rev. Proc. 2013-30 when the form is filed within 3 years and 75 days of the date the election was meant to start and the business had reasonable cause for filing late. Write “FILED PURSUANT TO REV. PROC. 2013-30” in the top margin of the first page.

Your state

Most states follow the federal election with no form of their own. These places need a step or tax the S corporation themselves:

• New York: a separate state election, Form CT-6, filed during the preceding tax year or by the 15th day of the 3rd month of the tax year. Federal approval does not mean New York approval.
• New York City: no S election. S corporations pay the General Corporation Tax.
• Washington, DC: S corporations file the D-20 franchise tax return as corporations.
• New Jersey: for periods beginning on or after December 22, 2022, no separate election. A federal S corporation files Form CBT-100S as a New Jersey S corporation and sends the Shareholder Jurisdictional Consent (Schedule SJC) with its return.
• Pennsylvania: automatic. Form REV-976 is only for opting out.
• Tennessee and New Hampshire: no election, but S corporations pay those states’ business taxes.

The state pages cover 12 places in detail.

After the election: payroll

As an S corporation, the business pays you a reasonable salary through payroll.

• Register with your state for income tax withholding and unemployment insurance.
• Withhold and pay Social Security, 6.2% from the business and 6.2% from you up to $184,500 in 2026, and Medicare, 1.45% each with no cap.
• File Form 941 each quarter, by April 30, July 31, October 31 and January 31, and Form 940 once a year.
• Give yourself a W-2. For 2026 wages, Form 940 and Forms W-2 and W-3 are due February 1, 2027, because January 31, 2027 is a Sunday.
• File Form 1120-S by the 15th day of the 3rd month after the tax year ends: March 15, 2027 for 2026. A late return costs $260 per shareholder per month, up to 12 months.

Sources

Sources: 14 official pages

• Instructions for Form 2553 (Rev. December 2020), Purpose of Form
• Rev. Proc. 2013-30, section 1
• IRS, S corporations (page last reviewed 11-Jun-2026)
• NY Tax Law §660(a); Form CT-3-S-I (2025)
• Form CT-6-I (12/20), When to make the election
• NYC Department of Finance, General Corporation Tax page
• DC OTR, 2025 D-20 Corporation Franchise Tax Forms and Instructions (revised 11/2025)
• 2025 CBT-100S General Instructions, Corporations Required to File
• PA Dept. of Revenue, REV-976 instructions (TR 11-22); Tax Reform Code of 1971 §401
• Tennessee Department of Revenue, Form FAE170 Instructions (2025), Schedule J3
• RSA 77-A:1, III(b)
• IRS Publication 15 (2026), What’s New
• Instructions for Form 1120-S (2025), When To File
• Rev. Proc. 2025-32, sec. 4.56

Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.

An explanation of public rules, not tax advice.