How to Fill out IRS Form 2553: Easy-to-Follow Instructions

[@nchanda7352]

if the business is incorporated on Jan, 5, 2018 (mine is May 4, 2022), and if they want to s corp election for 2018, what should be specified as the date in section E?

[@josephdiaz1705]

thank you for the video , I am posting this to give some clarification on section E AND F as I had to go to other sources for clearer explanations and it may help someone here : Brief research on filing dates : “What’s the deadline for filing Form 2553? The deadline to elect S-Corporation tax treatment depends on whether your business is newly incorporated or is in its second (or later) tax year. For a New Business A corporation or LLC must file an S-Corp election within two months and 15 days (~75 days total) of the date of formation for the election to take effect in the first tax year. Example: Your articles of formation was filed on August 21st. Two months later is counted to the numerically corresponding day of October 21st. Add 15 days to get November 5th. Your S-Corp election must be filed by November 5th to take effect in your first tax year." disclaimer : I am not an expert , do your own homework as well

[@taden2007]

thank u for this, i was somewhat confused. So new business u have 75 days to file for s-corp... if it was a pre-existing llc.. u have to file within 75 days of new tax year.

[@fortifiedgaze8688]

This definitely helped me. Tysm!

[@olivernavarro9748]

So if I formed my LLC in May of last year, what would be my excuse? To forming the s corp. My business never actually earned income. The LLC is active tho. Any input? Thank you

[@vintagegarden93]

What is the additional paperwork that we may have to file from the state? “You mentioned at the end”

[@TheTLSMD23]

This was amazing. Thank you for your clear and concise information. This takes a weight off of us busy folk who are still working full time and trying to start a business at the same time!!!

[@nancysousa7920]

This was helpful if I wanted to go to an S-corp I need to know if I change to from an S corp to a C corp?

[@christyleadersrealty8327]

This is the best instruction out here on KZbin

[@rpatel8978]

Hi, Good informational video. I have already formed a corporation so came across your video to file for s corp election. This is the confusion I have. In the state of NY, corporations are required to have a registered agent so when I am filling out form 2553 do I fill in the registered agent's address in the address block or do i fill in my (the incorporator) address on this form? Thanks for your assistance.

[@candid.303]

I’m appalled at how much my accountant tried to charge me for this.

[@1907Syndicate]

Thank you so much, do you have videos regarding the two additional forms you mentioned toward the end of the video?

[@chelceysmith7663]

So helpful! I am not sure on line G if it's just myself as a shareholder do I check the box?

[@dross0123]

In regards to filing in a community property state, does the other spouse still have to sign as a consenting spouse in Part 1 Section J-N even if only one spouse is listed as the sole member of the SMLLC?

[@scottluebke5012]

You are a legend. Just got my incorporation paperwork and it said I need to do this.

[@JohnSmith-wu6yx]

Hey thank you so much for your amazing video. Love it. Question: My business was formed in June of 2020 and we go by a calendar year, so what date would I put as the effective date for section "E" ? I'm confused about that.

[@accountisdisabled]

Same.

[@brittney9019]

You’d put June x, 2020 (x would be the exact date you started).

[@josephdiaz1705]

@@brittney9019 thank you for taking the time to reply to this - it was very helpful

[@noskillnochill]

These videos have helped me so much, thank you for empowering self-employed and small businesses!

[@OiVinn-eq1ml]

This was very helpful! I was stuck starring at the screen rereading the form trying to figure it out. Thank you!

[@Aboriginal_Alien]

Thanks for this great video. I’ve watched a lot of youtube videos on filling out this form and your is the best! But there is one detail no one seems to address and that is in the first line, under “Name”. Most people filling out this form may have a home business where their personal address is the same as the business address. If this is the case the instruction ask you to do something different. The instruction sheet says the following; “Name and Address Enter the corporation's true name as stated in the corporate charter or other legal document creating it. If the corporation's mailing address is the same as someone else's, such as a shareholder's, enter "C/O" and this person's name following the name of the corporation. Include the suite, room, or other unit number after the street address. If the Post Office doesn’t deliver to the street address and the corporation has a P.O. box, show the box number instead of the street address. If the corporation changed its name or address after applying for its employer identification number, be sure to check the box in item D of Part I.” I interpret this to mean that on the line labeled “Name” you should have put ABC Bakery LLC C/O Personal Name if the member lives at the same address as his/her business. Do you agree or am I missing something? Thanks :)

[@cimberlydavis8792]

Thank you for this well put together video. What happens if you are filling this after the March date that you mentioned? Is there a penalty? Do you not recommend that? Should I wait to have it take affect for 2024 instead of trying to have it take effect as of 1/1/23?

[@lizlaverde2658]

Thank you very much. God bless you. It was easy. This is the first time with my own businesses. I still get confused which one is the difference with LLC?

[@steveberneker9721]

On part 2 and part 3... You did not instruct us to fill out the the business name and EIN at the top of those pages, but you did on part 1. Even though we may not be using part 2 or 3, do we place our business name and EIN at the tops of those parts??? Just asking because you know the IRS gets picking with HOW their forms are filled out! PLEASE AND THANK YOU!

[@GetHelpTax]

It's a good idea to put the business name and EIN on each page.

[@polarbearjar1812]

Hey if I got my LLC in Iowa but live alabama do I see put Iowa in section c

[@krest2012]

how do you add it to your tax while doing it ? the LLC

[@ShiviceBrown]

Can you as the Ceo be its own shareholder ? and still get approved to be S corporation?

[@ochicoloto3524]

Very very informative. Who has to sign page 1? Instructions say president, treasurer, vice president etc. Do they mean president of your company? What if it is a one man LLC?

[@GetHelpTax]

A one-man LLC that elects to be treated as a S-corp is a sole shareholder corporation.

[@Brian_Chui]

Hi! If I only have myself as a member, do I need to fill out "K" to say I am the only persons that owns 100%? Or I should just leave it blank and consider it to be understood? Thank you for such a clear video!!

[@candicebien6690]

Hi can you guys any direction on how to actually file? How do I fax it, what should the cover letter say? I filled out the form which watching this video, thank you!

[@vs193928]

nice video.. quick Q? Can i fill this form in December 2022 for the tax year 2023? In other words, do I need to fill the form only between Jan-1 - March 15 for the tax year or can it be filled previous year also?

[@GetHelpTax]

It can cover previous year.

[@orlandowilliams5309]

I have a question...... I'm changing my principle address, should I put the new address or the old one and let them know that my address has change?

[@rizzoj9399]

The steps to change from an LLC to s-corp is to fill out this form. After I fill out the form, I would send it to the correct IRS (mines in UT since I live in AZ)? Then they'll send a letter confirming or denying? That's a simple process. Most CPA's are charing 200+ for this

[@jamesprice4074]

Very Helpful Question: If I named my company "ABC LLC" for the State and applied for a EIN number as just "ABC" will this cause any issues or do they both have to match? If they do have to match, can check the box in step D and enter the name "ABC LLC" on the 2553 form to correct this? Thank you

[@FunderaLedger]

Hi James, thanks for your question. That box in Step D of Form 2553 is typically for businesses that have undergone an official name change since filing for an EIN, which doesn't seem to apply in your case. What seems to have happened here is a naming error when filling out your EIN application. In this case, the best course of action is generally to contact the IRS to correct the mistake. For more information, contact a tax or business attorney, and click the link here under "What if I need to make changes to the information I submitted?": sa.www4.irs.gov/modiein/individual/help/help-toc.jsp

[@jamesprice4074]

@@FunderaLedger I appreciate your assistance. Thanks, James

[@toddlukasiewicz8039]

This is amazing. Thank you so much for making this video. Double thumbs up from a future business owner.

[@NeysaSimangunsong]

Does anyone know how to start filing a corporate car?

[@danjones8019]

Do I file the same form if I need to change from a Partnership to an LLC

[@Getmanmanw509]

What if you have two members LLC, and file 2553 form. For a 1099 wages do I have to add the other member in the form 2553 as percentage ownership or you can simply leave he/she out ? Thank you

[@GetHelpTax]

Typically if a person is an owner (or shareholder) they would be listed on the form to make the election. Form 2553 is not for wages.

[@binitpatel]

What should go in E date if you are in process of buying the business (may be in a month or so might be the start date of business) Basically we do not have the start date/month. What date should go in E and what would be for F(1) / F(2)?

[@mayraramirez6834]

If the document is going to be back dated. Do I sign and date the current date? The form is late.

[@fivestar000]

how do we know that it was converted to the scorp we get an email or mail

[@obinnaorji114]

thank you...it seems intuitive that people should make clear and concise videos, but that is not always the case. thanks again.

[@panafricanapresentsafrisco7026]

Can I still file late for tax year 2021?

[@dhirenxavier41]

Thank you for this helpful video. I formed an LLC on 02/01/2020. After doing some research, I decided to make an S-Corp election using form 2553 for the 2020 tax year. Per my understanding, I have 2 months and 15 days from the date of LLC formation (02/01/2020) to file form 2553. Is this correct? The reason for my doubt is because another way to interpret the deadline is 2 months and 15 days from January 1. Which interpretation is correct?

[@brittney9019]

Yes, thats correct. 2 months 15 days from when you began the LLC.

[@lelandg9965]

Question, if Chris Corporation leaves the company and agree to sell the 40% to Betty, does Betty business need to file a new form 2553 for 100% ownership?

[@keenan7192]

If we are filing the form in February, do we still file taxes as if we are not yet an S-Corp? Would we still do 1120 for a C-Corp, then once approved in a couple months file again using an 1120 S?

[@rondonofrio9811]

Thank you - great info - 1 question: Part 1 - section M - you stated to put down shareholders SS# why not the tax id # EIN (say the company incorporated with only 1 person and 1 share - at $1.00 value still SS# or is it ok for EIN - Thanks!

[@Rodriguezadam360]

can I have myself and my wife as a shareholder if i registered the llc as a sole mbr?

[@AYoung-kp4my]

Hi. Is the address of the business the physical location of the business or the address that you receive mail like a home? Thanks. Great video!

[@iamkor81]

Thank you so much for this video. 1 question, we got out EIN in 08/2020, what date will I put on line E of the form 2553? Again, thank you very much for the video.

[@AndreaJean]

Thank you soooo much!

[@juliovillalta1126]

Thank you for your video, it was very useful, I just have a question. If I don't have shareholders, should I have to wright my name on the space designated for shareholders information?

[@TradesbyNao]

I also have this same question. I do not have shareholders.

[@drkatrinapt]

THANK YOU FOR THIS VIDEO! This is so helpful! The instructions on the IRS website are so hard to understand. This was very easy to digest and I'm so glad you have this video!!

[@GetHelpTax]

That's true. The IRS instructions aren't always that easy to follow. Good luck with your business.

[@marufrasulov2077]

Thank you so much for the detailed explanations. It was so helpful. Could you please teach us how to fill out the 1120 S form for beginner S corp company owners, like me? Also, could you please tell me when should I fill it out and send it to the IRS after I opened my s corp? Thank you very much in advance!

[@Essays4College]

Tax returns are complicated especially for businesses. Why don’t you hire an accountant to do it for you?

[@habitathairsalon2099]

Very Helpful, watched through twice to make sure I got it right. Thanks so so much!

[@carlohrndz3948]

Thank you so much, you just saved me $395 that my accountant wanted to greedy charged me for this simple form. Wishing you all the best for this holidays!

[@heel3r970]

Where did you get the editable form?

[@nycapplepie9525]

HI miss Priyanka, Can I have the S-Corp Election to take effect in the year of 2018 if I have the STATE start date of the Incorporation date in 2019? Basically, I started getting paid for services provided in 2018, but I only FORMED my company with the State in 2019. I will be able to take care of the taxes for 2019 when I submit the S-Corp 2553, but I'm not sure what to do for 2018...Please advise. Thank you

[@sugarkanesugaringspallcsug9879]

Thanks for this video. It was a prayer answered. I've been trying to get my S-Corp since 2021 but they kept sending me the forms back without a true understanding so this video broke it down for me and sent the forms off today and THEY WERE CORRECT! Thanks!

[@GetHelpTax]

Good luck with the business!

[@eddysaavedracruz4677]

Great information! I have a question though, If its a single member llc, Do i need to fill out the shareholders section? Thanks in advance

[@FunderaLedger]

Yes. According to the IRS instruction form, "An entity without stock, such as a limited liability company (LLC), should enter the percentage of ownership and date(s) acquired" on line L. You can read more about this here: www.irs.gov/pub/irs-pdf/i2553.pdf Hope that helps!

[@Gadonekoko]

Amazing explanation and clearly state everything. Thanks

[@MrMikelove123]

Hi Priyanka, Thank you ... very helpful this video I have one another question I opened my company Incorporation (S corp) on 7/29/2019 fill up form SI-COMPLETE 12-26-19 and get new EIN form IRS on 9-3-19 and I forget to file form 2553 now IRS will fine me for this ?

[@PerForMSR]

Do we still sign the top of page 3 and 4 even though it doesn’t apply?

[@FunderaLedger]

Good question. The IRS isn't clear about that in their instructions. We recommend signing each page just to be safe!

[@jorgecass8074]

Thank you so much you helped me fill mine out for my company! Thank you I’m just starting a One person LLC

[@FunderaLedger]

Your welcome! Good luck with your business :)

[@Mr_Bowers1]

Hello. I'm kinda confused. In section F I'd be checking box #1. My business was incorporated on 8/26/19 so, what would I put on section E? 1/1/2020? and how would my explanation read in section I?

[@FunderaLedger]

Hi there, thanks for watching the video! Section F is simply about which type of tax year your business follows. For most non-seasonal businesses, this is a calendar year. Section E is about when you want your S-corp tax status to take effect. A newly formed business must file its election or before the 15th day of the third month of the first tax year. Your tax year typically starts when you begin business or acquire assets or shareholders. If your tax year started on August 26, 2019, your first month will end Sept. 25, your second month will end Oct. 24, and Nov. 8 (15 days after that) would be your filing deadline. Please inquire with a tax professional or business attorney to confirm.

[@rickzheng5143]

Can I add my spouse as business owner in Texas? Assuming spouse will receive income?

[@LP-pj6rz]

Very clear and easy to follow. Thank you for the video!

[@imblessedllc]

Thank you for the good content

[@KathleenJasperEdD]

So helpful. Thank you so much.

[@holisticrelationshipcoach]

It's my understanding that if you do not identify a trust and beneficiary that the IRS can de-qualify your S-corp and charge you back taxes. Why is it that you are saying that Section III is optional?

[@ddkfavorites]

Thank you for this helpful and to-the-point explanation!

[@darrellhunt8180]

If you are the sole owner w/o shareholders do you list yourself w 100%

[@nikvan13]

Priyanka, This was very helpful. I have a quick question. We formed the LLC in Jan 2019 and started running payroll in August 2019, can we file for S corp status for 2019? Based on what I read it seems we would not be eligible, since we did not do it 2 months and 15 days from incorporation? Is that an accurate assessment?

[@FunderaLedger]

Hi Aniket, that's correct. You would have needed to file the form within 2 months and 15 days after the date of formation that's listed on your articles of organization. If you file Form 2553 in calendar year 2019 or by March 15, 2020 (assuming formation on Jan. 1), the S-corp tax election will be effective for the 2020 tax year (taxes filed in 2021). I recommend checking your deadlines with a tax professional.

[@nikvan13]

@@FunderaLedger Thank you very much.

[@airenbourdeth6986]

Can I list my LLC manager under section J? The manager is my wife.

[@n.beasley8491]

Awesome video! Easy to follow and your delivery was awesome. Thanks for sharing.

[@percyastronautstatus.8780]

Pleasant voice ... beautiful

[@Tkmexpressllc]

Great explanation!!

[@rafaelparedes1937]

Thank you for making this video! still relevant to 2022

[@adextaxfinancialservices4510]

Very Insightful!

[@oliviatooley7211]

Thank you. This was helpful, clear instruction.

[@Midnightblue19444]

I am an currently 100% shareholder and want to give 50% shares to my nephew, what form do I have to submit?

[@amymallett4708]

This was SO helpful! I was so lost! Thank you so very much!!

[@peterkubilus5972]

Thank you for clarifying up part 2!

[@malbarda]

Very much appreciate the clarity and step-by-step!

[@PhuongPham-uh9kp]

Thank you so so much for this helpful, clear and detailed information!

[@sesiyi]

It was a very detailed and well explained video. Thank you!

[@nj2024ac]

This was very helpful. Thank you.

[@klehmbrandon]

great video thanks so much!

[@Franckystudios]

Thanks. I really appreciate the step by step guide and explanation on each sections.

[@FunderaLedger]

Your welcome :) Stay tuned for more videos

[@crunkflawdachick]

This was great! So easy to follow!

[@alejandrogarcia7465]

Thank you for the explanation! Very clear and detailed.

[@isaacbulbulia1892]

Thank you so much you made it so simple

[@FunderaLedger]

You're welcome!

[@pradyothpamala8697]

Can I give Indian address in form 2553

[@EthnosSynergyEnergy]

This is excellent!

[@eduardoamezcuaea7919]

Great video, thanks for sharing your knowledge

[@based_yeoman9138]

Just blew by part E, unfortunately. :(

[@chancyburton9227]

Amazing! Thank you so much! This video answered all of my questions!

[@tp9825]

Hi miss Priyanka. Thank you so much for this informative video. One quick question- What does it mean with a no non residential alien? My father has only work permit (no green card) and he is the only shareholder of INC.-S Does he fit into the requirements of filing form 2553? thank you mam.

[@FunderaLedger]

He is a resident alien so he fits the requirements. A nonresident alien is someone who does not live within the US and is not a citizen.

[@morphfitness3172]

Thank you that was very helpful

[@RB-mp2gs]

Extremely detail tutorial - Nice job and Thank you!

[@121Kathmandu]

Simple explanation, was great help. thank you.

[@FunderaLedger]

Glad you found it usefu; :)

[@RyanCDavid]

I appreciate the video however I would strongly encourage people to use an attorney instead of legal zoom. Legal zoom basically just makes the entire process of forming a company and electing S-Corp more difficult so they can charge you more money and not answer the phone after they got ya signed up. Plus you will have a very difficult time canceling any of the additional services you purchase through them so you might end up getting a lawyer anyways even if your within the 60 day money back guarantee. If you do use them just know you can request your own EIN in ten minutes for free or a few dollars for a hard copy on the secretary of state site, a registration agent can be yourself or done for much cheaper and accounting programs can be had for much cheaper. Just saved you about $1500. Your welcome.

[@GetHelpTax]

It's always a good idea to seek the assistance of a lawyer and/or tax professional. It often costs more in the long run to amend filings that were not done correctly the first time.

[@kebychattha405]

Thanks a lot for this video service

[@sunsetstringsmusic]

Thanks for the video, this was very helpful!

[@GetHelpTax]

Good luck with your business!

[@kellyjohill5159]

Hello Priyanka. Wonderful video! Thank you for the step-by-step advice.

[@FunderaLedger]

Of course! We appreciate your kind words :)