NSNexus by State

How to fill out Form 2553, step by step

Reviewed by the Nexus by State research team against IRS forms, instructions and the Internal Revenue Code (sources below).

Form 2553 is four pages. Most small LLCs and corporations complete Part I (pages 1 and 2) and sign it; Part II is only for a fiscal tax year, Part III only for a qualified subchapter S trust, and Part IV only for a late election by an LLC or other eligible entity.

Before you start

  • Use the current form: Form 2553 (Rev. December 2017) with its instructions (Rev. December 2020). The IRS lists both as the current revision.
  • Have the entity’s EIN. If it does not have one, it must apply for one; online applications at IRS.gov/EIN are issued immediately once validated.
  • Check eligibility first: a domestic entity, no more than 100 shareholders, only eligible shareholders, one class of stock, not an ineligible corporation. See who can elect.
  • Know who will sign: a corporate officer signs page 1 and every shareholder signs column K on page 2.

Part I, top block: name, address and EIN

  • Name. Enter the true name from the charter or other document that created the entity. If the mailing address is someone else’s (for example a shareholder’s), add “C/O” and that person’s name after the entity name.
  • Address. Include the suite or room number. Use a P.O. box only if the Post Office does not deliver to the street address.
  • A. Employer identification number. The entity’s EIN.
  • B. Date incorporated and C. State of incorporation. For an LLC, the date and state of formation.
  • D. Check “name” or “address” only if the entity changed it after applying for the EIN.

Line E: the effective date

Line E is the first day of the tax year the S election should start. For an entity electing for its first tax year in existence, enter the earliest of the date it first had shareholders (owners), first had assets, or began doing business; that is usually not January 1. An existing calendar-year entity enters January 1 of the year S status should start.

Form 2553 generally must be filed no more than 2 months and 15 days after the date on line E. See the Form 2553 deadline for how the date is counted.

Line F: the tax year

Check box (1) for a calendar year. Boxes (2) and (4) are for a fiscal year or a 52-53-week year not ending in December; if you check either, you must also complete Part II on page 3.

Lines G and H

  • G. Only if more than 100 shareholders are listed in column J and treating family members as one shareholder brings the count to 100 or fewer.
  • H. The name and title of the officer or legal representative the IRS may call, and a phone number.

Line I: only for a late election

Leave line I blank if you file on time. For a late election, line I (or an attached statement) explains the reasonable cause for filing late and the diligent actions taken once the mistake was found, and the top of page 1 must say “FILED PURSUANT TO REV. PROC. 2013-30”. See late election relief.

The officer signature

Form 2553 must be signed and dated by the president, vice president, treasurer, assistant treasurer, chief accounting officer, or another corporate officer (such as a tax officer) authorized to sign. The instructions are explicit: an unsigned Form 2553 is not considered timely filed.

Page 2: columns J through N

  • J. Name and address of each shareholder or former shareholder who must consent. If a disregarded single-member LLC owns stock, list its owner.
  • K. Each shareholder signs and dates the consent. See who must sign.
  • L. Number of shares owned on the date the election is filed, and the date(s) acquired. An LLC enters each owner’s percentage of ownership instead. Former shareholders enter -0-.
  • M. Social security number of each individual; EIN of an estate, qualified trust or exempt organization.
  • N. The month and day each shareholder’s tax year ends (12/31 for most individuals).

Page 2 has seven rows. For more shareholders, use additional copies of page 2 or a continuation sheet that shows the entity’s name, address and EIN and the information in columns J through N.

Pages 3 and 4

  • Part II (page 3): only when line F box (2) or (4) is checked. Complete item O and one of items P, Q or R.
  • Part III (page 4): the QSST election by a trust’s income beneficiary, used only if stock was transferred to the trust on or before the date of the S election.
  • Part IV (page 4): representations that apply when an LLC or other eligible entity files a late S election that is also a late entity classification election.

Then file it

Fax it or mail the original to the IRS service center for the state of the principal business: see where to file Form 2553. If you fax, keep the original with the entity’s permanent records.

Frequently asked questions

Does every shareholder have to sign Form 2553?
Yes. Each shareholder consents by signing and dating column K or a separate consent statement, and some interests need more than one signature (both spouses for community property, each joint tenant). An officer also signs page 1.
What date goes on line E of Form 2553?
The first day of the tax year the S election should start. A new entity electing for its first year enters the earliest of the date it first had owners, assets or business; an existing calendar-year entity enters January 1.
Do I need to fill out pages 3 and 4?
Only in specific cases: page 3 (Part II) for a fiscal tax year, page 4 Part III for a qualified subchapter S trust, and Part IV for a late election by an LLC or other eligible entity. They stay part of the form you file.

More Form 2553 guides

Sources

  1. Instructions for Form 2553 (Rev. December 2020), Internal Revenue Service. Rev. December 2020 (for use with the December 2017 Form 2553). Retrieved .
  2. Form 2553, Election by a Small Business Corporation (Rev. December 2017), Internal Revenue Service. Rev. December 2017 (current revision per IRS.gov/Form2553). Retrieved .