Do I Need to File Form 8832 and Form 2553?
Generally, non-corporation business entities will make use of Form 8832. Although it is possible to elect S corporation status using Form 8832, traditional corporations prefer to use Form 2553 to elect this status because it is made specifically for this purpose.
What is the purpose of a Form 2553?
Form 2553 is used by a corporation to elect to be treated as a pass-through entity (Subchapter S corporation) and to indicate the tax year elected. Similar to partners in a partnership, income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself.
When to file Form 2553 for S corporation?
If the entity plans to make the election to be treated as a corporation and become an S corporation on the same date, only Form 2553 is filed, and it should conform to the S corporation rules. The authors recommend that the Form 2553 be filed by the earlier of 75 days or two months and 15 days after the date the S election is to become effective.
