S Corp status lets business income, losses, deductions, and credits pass through to shareholders, eliminating the corporate-level tax and potentially reducing self-employment tax for profitable business owners.
Filing your S Corp election takes three steps. LegalNature handles the complicated part — you handle the signature.
Provide your entity name, formation state, EIN (Employer Identification Number), shareholder details, and desired election effective date. No IRS instructions to decipher, no forms to track down yourself.
Our team completes the Election by a Small Business Corporation form, reviews it for accuracy against your entity type and state, and delivers it to you ready for signature.
You sign the completed form and we submit it to the appropriate IRS service center on your behalf — no guesswork required.
LegalNature offers guidance to navigate the nuances of S Corp elections across all 50 states and the District of Columbia. LegalNature offers a 30-day money-back guarantee. If you're not happy, then we're not happy. Give us a call and let us help.
What is an S Corp election?
An S Corp election is the process of filing IRS Form 2553 to have your LLC or corporation taxed as an S corporation under Subchapter S of the Internal Revenue Code. The election changes only your federal tax classification — your underlying legal entity structure and state-law status remain unchanged.
How do I elect S Corp status for my LLC?
To elect S Corp status for your LLC, file IRS Form 2553 — Election by a Small Business Corporation — with the IRS service center for your region, signed by all shareholders. LegalNature prepares the form based on your entity information and delivers it ready for your signature and submission, including filing address instructions for your state.
What is the deadline to file an S Corp election?
For a calendar-year business, the deadline to have the S Corp election take effect for the current tax year is March 15 (the 15th day of the third month of the tax year). New entities have 2 months and 15 days from the date of formation. You can also file at any time during the current year to have the election apply starting the following tax year.
Can I file a late S Corp election?
Yes. IRS Rev. Proc. 2013-30 provides relief for businesses that missed the filing deadline. You may submit a late Form 2553 along with a reasonable cause statement, provided your business has consistently filed and reported taxes as an S corporation. Late elections are more complex; consulting a tax professional is highly recommended.
What are the requirements to elect S Corp status?
To qualify, your business must be a domestic entity with no more than 100 shareholders, all of whom are U.S. citizens or permanent residents. The company may have only one class of stock, and all shareholders must unanimously consent to the election by signing Form 2553. Certain entity types, including specific financial institutions and insurance companies, are ineligible regardless of other factors.
Does my state require a separate S Corp election?
It depends on your state. Most states automatically honor the federal S Corp election and require no additional filing. Others require a separate state-level election with the state tax authority.
How long does an S Corp election take?
The IRS typically processes Form 2553 and issues a confirmation letter within 60–90 days of receipt, though processing times can vary. LegalNature delivers your completed, signature-ready form promptly after you submit your questionnaire, so there is no delay on your end.
What is the difference between an S Corp and a C Corp?
A C Corp pays federal income tax at the corporate level. When after-tax profits are distributed to shareholders as dividends, shareholders pay tax again on those distributions — this is the double taxation problem. An S Corp eliminates corporate-level federal income tax entirely; income and losses pass through directly to shareholders, who report them on their personal returns. For eligible businesses, the S Corp election is one of the most effective ways to reduce total tax burden.
