Hey guys, so today we're gonna figure out how to fill out Form 2553, which is the S Corporation Tax Election form. Applause Music. Hey, this is Sam Li, I'm a business lawyer for entrepreneurs. I help entrepreneurs start and grow their businesses. One of the questions I get all the time is how to get an S Corporation Tax Election for an LLC or a corporation. Essentially, what you need to do is first form the company, either the LLC or the corporation. Once the company is registered, then you want to fill out the special IRS form called Form 2553 to get the S Corporation Tax Election for your company. In this video, I'm going to show you how. So first of all, how do you even get Form 2553? All you do is search for Form 2553 and here you have it. It's a PDF that you need to download and print out. So here it is, let's take a look right here. The first page pretty much gives instructions on where to send in the form once you fill it out. Let's go through it. The first part is the name of the company. This is the full legal name. So let's just say ABC LLC, if it's a corporation, if it's a full legal name, ABC Inc. The second part is you need to provide the EIN number. In order to fill out Form 2553, you will need to first get an EIN number from the IRS. So let's just say we have the EIN number. The third thing that you need is your business address. This is essentially where the IRS has your address on file. Also, when the IRS assigns your S Corporation Tax Election, they will mail you their confirmation to this address....
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2553 instructions Form: What You Should Know
It lets you choose whether you want to be taxed as a limited liability company, an S corporation, or as an unincorporated association, and what type of income and dividends tax. As you'd expect, you can decide to do the same for your partner. What this means is if you are a sole proprietor, you can be taxed as a sole proprietorship. This means that both your share and your partner's share are taxed separately. So if you owned one half of the partnership, and were taxed as a sole proprietor, one-half of your partnership's net income or loss, or any amount over your tax liability, would be taxed at your regular corporate tax rate. For more details, see the Tax Treatment of Sole Proprietorship on IRS.gov. The choice of whether to choose corporate or partnership income or dividends is also determined in part by whether you want to file Form 2553 in the year that you are formed. If you decide to be a small business corporation, you can elect to use Form 2553, and file it only if you qualify for the election. (The choice of whether to be a partnership or sole proprietorship in Form 2553 is determined by your partnership or sole proprietorship separately, and will be discussed in detail below.) If you are an unincorporated association, you can elect to use Form 2553 only if your Association meets the requirements set out on the form. Form 2553, Election and Requirements Here are the requirements for making an election. You must have filed a return of tax, and paid any tax owed. An election is the first step of the process, and must be made according to the instructions on the form. 1. If your business is an unincorporated association, you can file Form 2553 and include an election with the IRS. To do so, you must attach a declaration signed by each of the members of the association. The Declaration should state that each member has elected in accordance with these instructions or the rules issued by your state association, and has the right to file a copy of this declaration with any taxes due from the Association. You also must attach a copy of the Association's Constitution and Bylaws or a copy of the Association's By-Laws, and a copy signed by each member.
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