What Is An Electing A S Corporation & The Filing Deadline?
Electing S Corporation status has tax liability implications. An S Corporation status allows shareholders to apply company profits and losses to individual income tax returns. In order to elect for an S Corporation status, the business entity must first incorporate as a C Corporation and then file the IRS form 2553you’re your company has recently been incorporated, your corporation may file for S Corporation status anytime during the tax year within 75 days of your incorporation date. If, however, your company has been in effect for more than that time period, S Corporation election must be made by March 15, if the corporation is a calendar year taxpayer, in order for the S Corporation election to take effect for the current tax year. A corporation may decide to elect for an S corporation status, but this decision may not take effect until the following year.
