S corp tax status

Get S corp tax status.

An S corp isn't a separate company. It's an LLC or corporation taxed differently, by filing Form 2553 with the IRS.

US owners only
Form 2553 filed for you

Already have a company? We file the election

Who can be an S corp?

The IRS sets the rules, and every one has to be met.

It qualifies if

Every owner is a US citizen or US resident
The owners are individuals (or certain estates and trusts), not companies or partnerships
It has 100 owners or fewer
It has one class of stock

It doesn't if

Any owner is a nonresident alien: not a US citizen and not a US resident for tax
Another company or a partnership owns part of it
You want different classes of shares, as many investors do

If any of these applies, an LLC or a C corporation works, and we form both.

When can it save tax?

Owners who work in the business pay themselves a reasonable salary through payroll, and profit beyond that can pass to them without self-employment tax. Whether that saves more than the extra payroll and filing costs depends on your profits.

Your accountant can tell you whether it fits, and we file the election the day you decide.

The deadline

File Form 2553 within 2 months and 15 days after the start of the tax year it should apply to, or any time in the year before. For a company on the calendar year, that's March 15.

Missed it? The IRS offers late-election relief for up to 3 years and 75 days, with a statement of reasonable cause. We prepare that too. The deadline worked out, and how late relief works

Start a new S corp

We form your LLC or corporation and file the S corp election before its deadline, even if the EIN is still on its way. The election is $79 on top of either package.

CoreFiling and company documents$19.99

Your LLC filed with the state, name checked first
Your corporation filed with the state, name checked first
Your nonprofit corporation filed with the state, name checked first
Operating agreement for your type of LLC
Bylaws
Nonprofit bylaws
First minutes and resolutions
We file within 3 business days of your paymentOur own preparation time. The state's processing time is separate
Compliance checklist with reminders for 1 year

Add to CoreRegistered agent, first year$89EIN from the IRS$59Your first annual report filed$79

Move to Complete any time in your first year: you pay only the difference ($179.01).

CompleteRecommendedPlus rush processing, agent, EIN and annual report$199

Everything in Core
Rush processing: we file within 1 business day of your paymentInstead of 3. Our own preparation time; the state's processing time is separate
Registered agent for the first yearThrough our provider, then $89 a year
EIN from the IRSApplied for by phone, fax or mail, as the IRS requires for owners outside the US
Your first annual report filed, our fee waivedThe state's fee at cost
Compliance checklist with reminders for 5 years
One change to your company in the first year, our fee waivedSuch as a new address. Any state fee at cost
Bank application checklistThe bank makes its own decision

Continue with Complete

Prices are plus the state's fee, passed on at cost.

Questions people ask

Can an LLC be an S corp?

Yes. An LLC that qualifies files Form 2553 and is then taxed as an S corp. It stays an LLC under state law, and no separate Form 8832 is needed.

Can someone outside the US own an S corp?

No. The IRS doesn't allow owners who are nonresident aliens. An LLC or a C corporation works instead. Why, and what works instead.

When does it take effect?

From the start of the tax year you choose, if the election is filed on time. The IRS decides whether to accept it and writes to confirm.

Does it still file a tax return?

Yes, Form 1120-S every year. The profits then pass to the owners' own returns. A qualified tax professional prepares it.

Does every owner have to sign?

Yes. Every shareholder signs a consent on the election, and in some cases their spouse does too.