Filling out the IRS Form 2553 can seem like a daunting task. It’s a form that is important for small business owners and other employers, and it’s important to make sure that the form is filled out correctly. In this article, we’ll go through what the form is, who needs to fill it out, and how to do it correctly.
What is IRS Form 2553?
IRS Form 2553 is an Internal Revenue Service (IRS) form that is used to determine the election of a small business to be treated as a corporation under the US tax code. This form is also known as the “Election by a Small Business Corporation”. It is required for companies that wish to be taxed as a corporation, and it must be filed with the IRS within two and a half months of the beginning of the tax year.
Who Needs to Fill Out IRS Form 2553?
IRS Form 2553 is required for any company that wishes to be taxed as a corporation. This includes businesses such as C-corporations, S-corporations, and Limited Liability Companies (LLCs). It is important to note that this form is only for businesses that have fewer than 100 shareholders who are all US citizens or permanent residents.
What is Included in IRS Form 2553?
IRS Form 2553 includes several different pieces of information that must be filled out. This includes information about the company, such as the name, address, and tax year. It also includes information about the company’s shareholders, such as their names, addresses, and Social Security numbers. Finally, the form requires the company to submit information about its business activities, such as the type of business, the number of employees, and the total revenue for the year.
When Should IRS Form 2553 be Filed?
IRS Form 2553 must be filed within two and a half months of the beginning of the company’s tax year. It is important to note that the form must be signed by all shareholders of the company, and the signatures must be notarized. In addition, the form must be accompanied by a check or money order for the required fee.
How to Fill Out IRS Form 2553
Filling out IRS Form 2553 is a relatively straightforward process. All of the required information must be provided, and any information that is not applicable should be marked as “N/A”. It is also important to make sure that all of the information is accurate and up-to-date. Finally, the form must be signed and dated by all shareholders, and the signatures must be notarized.
What Happens After IRS Form 2553 is Submitted?
Once the form is submitted, the IRS will review the form and make a determination on whether or not the company is eligible to be taxed as a corporation. If the company is approved, the IRS will issue a letter of determination that outlines the company’s tax obligations. If the company is not approved, the IRS will issue a letter of rejection.
Conclusion
Filling out IRS Form 2553 is a necessary step for small business owners who wish to be taxed as a corporation. The form must be filled out accurately and completely, and it must be signed and notarized by all shareholders. Once the form is submitted, the IRS will review it and make a determination on whether or not the company is eligible to be taxed as a corporation.
