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Digg it UP - What is Required for S Corporation Status
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The IRS rules
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In order to qualify as an S corporation, you must make a timely and accurate filing of Form 2553, Election by a Small Business Corporation. According to IRS, the corporation must make its S election within the first two and one-half months of the corporation’s taxable year, or, at any time during the preceding taxable year. If the S election is made after the first two and one-half months of a corporation’s taxable year, then that corporation will not be treated as an S corporation until the next taxable year.
The IRS rules
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In order to qualify as an S corporation, you must make a timely and accurate filing of Form 2553, Election by a Small Business Corporation. According to IRS, the corporation must make its S election within the first two and one-half months of the corporation’s taxable year, or, at any time during the preceding taxable year. If the S election is made after the first two and one-half months of a corporation’s taxable year, then that corporation will not be treated as an S corporation until the next taxable year.
The IRS rules
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In order to qualify as an S corporation, you must make a timely and accurate filing of Form 2553, Election by a Small Business Corporation. According to IRS, the corporation must make its S election within the first two and one-half months of the corporation’s taxable year, or, at any time during the preceding taxable year. If the S election is made after the first two and one-half months of a corporation’s taxable year, then that corporation will not be treated as an S corporation until the next taxable year.
The IRS rules
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The IRS rules
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The IRS rules state that a corporation’s taxable year generally begins on the earlier of:
1. the date the corporation had shareholders;
2. the date the corporation acquired assets; or
3. the date the corporation began doing business.
The IRS also states that a limited liability company (LLC) that is eligible to be treated as a corporation may be classified as an S corporation, provided that the entity meets all other requirements to qualify as an S corporation. If an LLC meets the other requirements to qualify as an S corporation, the LLC also files a Form 2553.
The signature line of Form 2553 must be signed and dated by the president, vice president, treasurer, assistance treasurer, chief accounting office
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