Your LLC or corporation, taxed as an S Corporation. Open to companies whose owners are all U.S. citizens or U.S. tax residents.
When should S Corporation status start?
On time. File by March 15, 2027.
Your election
Free with S Corp formation
$149
Your company needs an EIN first. We can get it for you.
An S Corporation election is a request to the IRS, made on Form 2553, for a new way of taxing your company. The company's profits and losses then pass to its owners, who report them on their own tax returns. It also changes how you pay yourself, since owners who work in the company need a reasonable salary through payroll.
Choose by your deadline. For S Corporation status from January 1, Form 2553 is due by March 15.
| What you get | Also for status starting next year | Needs a reason for the delay |
|---|---|---|
| Owner eligibility check | Included | Included |
| Form 2553 prepared | Included | Included |
| Signatures from all owners | Included | Included |
| Faxed to the correct IRS center | Included | Included |
| Late relief requested | Not included | Included |
| Relief statement written with you | Not included | Included |
| Start your election |
Four points to plan for from the start.
Payroll tax returns for owner salaries must be filed by every due date.
The company files Form 1120-S each year, showing each owner's share of profit.
A few states and cities need their own election or still tax the company itself.
A new owner who does not qualify ends the election that same day.
Most of the work is ours. You share a few details and sign.
Start your electionYour election
The Blugency Promise, three commitments with every S Corporation election.
If your company does not qualify for the election, we return our fee in full.
If the IRS does not accept a form we filed, we correct it and refile right away at no cost.
If 2 months pass with no reply, we help you contact the IRS and keep following up until there is an answer.
Only if you are a U.S. citizen or a U.S. tax resident, and so is every other owner. Estates, certain trusts and certain charities can also be owners, but companies and partnerships cannot. Even one owner outside these groups makes the company ineligible, so most founders abroad cannot use this election.
It depends on your numbers. Salary carries employment taxes and distributions of profit do not, but a working owner must first be paid a reasonable salary. If that salary is too low, the IRS can treat distributions as salary. The IRS judges what is reasonable by your duties, experience and time spent on the business.
You must file within 2 months and 15 days after the start of the first tax year you want it to cover, or any time during the year before. The IRS counts in months, so a tax year that starts on November 8 has a deadline of January 22. For a company in its first year, the tax year starts on the earliest date it had owners, had assets or began doing business. That is not always the day it was formed.
You can ask the IRS for late election relief within 3 years and 75 days of the start date you want, and the IRS charges no fee for it. You must explain a reasonable cause for the delay and show you acted quickly once you found out. Any returns already filed for those years must also treat the company as an S Corporation. If you do not qualify, you can still elect on time for the next tax year.
The IRS says a decision usually comes within 60 days after filing. Acceptance arrives as IRS Notice CP261, a letter to keep in your permanent records. If the letter shows a later start date than you asked for, you may still ask for late relief.
No. Under state law it stays the same LLC or corporation, and only its federal tax treatment changes. An LLC that files Form 2553 on time does not also need Form 8832, the IRS form for choosing to be taxed as a corporation.
All owners sign, plus an officer who signs for the company. Joint owners each sign, and in some states an owner's spouse may need to sign too. An unsigned form does not count as filed on time, so we confirm all signatures are in place before we send it. Keep the signed original with your company records, as the IRS asks when a form is faxed.
Yes. The IRS takes it by mail or fax, and there is no IRS fee unless you ask for a tax year based on a business reason. Our price pays for the work around the form, from checking eligibility and collecting signatures to following up with the IRS.
Most states follow it with no extra form. New York asks for its own election, Form CT-6, and New Jersey asks each owner to sign a consent, and both are included in our price. Some places still tax the company itself, including Washington, D.C., New York City, Tennessee, Texas and New Hampshire.
Yes. It ends on the day the company stops meeting the eligibility rules, and owners holding more than half of the shares can also revoke it. Once it ends, electing again before the 5th tax year after that needs IRS consent.
What else your company needs, all in one dashboard.
When you are ready to open the account
The documents, the preparation and the guidance, so your application is complete when you apply.
Registered Agent
Your state requires a registered agent for your company. We receive your legal papers and help keep you in good standing.
When your company needs a U.S. address
A U.S. address for your company, with your mail scanned to your dashboard.
Guides written from real filings, for founders planning their company's taxes.
A new tax status for the company you already have.
