IRS Form 2553 (Election by a Small Business Corporation) is the form that a corporation (or other entity eligible to be treated as a corporation) files to be treated as an S corporation for federal tax purposes.
The IRS has specific criteria that entities must meet to qualify for S Corporation election. Here’s an overview of their requirements:
- Must be a domestic corporation or a domestic entity eligible to elect to be treated as a corporation
- Must timely file Form 2553
- Must have no more than 100 shareholders (or LLC members).
- Shareholders […]