If you are ready to save money on your corporate taxes as a real estate agent, investor or small business, we are here to help. Registering with the IRS to form your corporation is easy, and form 2553 is simple when you know what to fill out and how. The TL:DR version is by marking yourself from a C Corporation (which is the IRS default) to a S Corporation you can lower what you owe in taxes. It is important to note there are differences in C and S corps, and we’ll cover those in a follow up post.
Below you’ll find FAQs about Form 2553 including what it is, who is eligible for it, and how to fill out and file this form.
The 2553 form is the tax form that tells the IRS that a business wants to be registered as an S Corporation rather than a C corporation.
To be eligible and qualify you must:
Start by clicking here to download a copy of Form 2553. Now follow these instructions to fill form 2553 out:
The original completed Form 2553 must be mailed or faxed to an Internal Revenue Service Center.
If you are incorporating in Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, or Wisconsin, submit to: Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999 or fax to (855) 887-7734.
If you are incorporating in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, or Wyoming, submit your form to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201 or fax to (855) 214-7520.
Now that you know how to complete and submit tax form 2553, here are some common questions.
The deadline to submit Form 2553 depends on whether or not your corporation is newly incorporated.
The deadline for form 2553 is:
If your incorporation is filed on or after January 1 of the current tax year, then you can submit Form 2553 any time during the tax year with these exemptions:
There is no fee to file Form 2553. However, there can be other costs associated with being a S Corp. If you check box Q1 of Part II, you will be charged a user fee of $5,800 (subject to change by Rev. Proc. 2018-1 or its successor).
Note: You don’t pay the fee when filing Form 2553. Instead, the service center will send Form 2553 to the IRS in Washington, DC, who will then bill you.
The IRS will contact you within 60 days of submitting your application to let you know if you are approved.
Once a small business files Form 2553 and is approved, you do not need to file a Form 2553 again.
Now you’re ready to fill out Form 2553 if you want to change your small business from a C Corporation to a S corporation!
Your closing disclosure is arguably one of the most important documents you’ll run into when…
Entrepreneurship is both thrilling and demanding. For business owners constantly juggling multiple responsibilities, time is…
March 12, 2024, Fairfax, VA – In a significant achievement for ATG Title, the Fairfax-based…
Real estate teams are gaining popularity among realtors, and in the United States alone, there…
In the ever-evolving landscape of business, maintaining a competitive edge demands adaptation and improvement. One…
Tough markets often lead people to try creative avenues to set them apart from the…