Guide to Start an S Corp Election

Forming an S Corporation (S corp) can help you save on self-employment taxes and simplify how your business income is reported.

Unlike a C Corp, an S Corp is a tax status, not a different type of business structure — and any eligible LLC or corporation can elect to be taxed as an S Corp with the IRS.

???? How to Start an S Corp Election

1. Form Your Corporation or LLC First
   You’ll need to legally register your business with your state.
2. Meet the IRS Requirements
   • Must be a U.S. entity
   • Have no more than 100 shareholders
   • Only issue one class of stock
   • Shareholders must be U.S. citizens or residents
3. File IRS Form 2553
   Submit this form to elect S Corporation status. It must be filed within 75 days of formation (or the start of the tax year).
4. Stay Compliant
   Maintain accurate payroll records and follow corporate formalities to keep your S corp in good standing.

???? Why Choose S Corp Status?

• Potential savings on self-employment taxes
• Pass-through taxation (no double taxation)
• Increased credibility with clients and partners