The Step-by-Step Guide to Filing an S-Corp Election (Form 2553)

If you’ve decided an S-Corp election makes sense for your business, the next question is how to actually make it happen. The good news is the process is fairly straightforward. 

The catch? The IRS has strict rules about timing and paperwork, and missing a step can push your election back an entire year.

This guide walks through everything a Fort Worth business owner needs to know to successfully file Form 2553 and start reaping the tax benefits of an S-Corp.

Step 1: Make Sure You’re Eligible

Not every business can elect S-Corp status. Before you grab the form, double-check that you meet the IRS requirements.

To qualify:

• You must be a domestic business organized in the U.S. (Texas LLCs and corporations qualify).
• You must have no more than 100 shareholders.
• Shareholders can only be individuals, certain trusts, or estates — not partnerships or corporations.
• You can only issue one class of stock.
  

Most small Fort Worth businesses meet these rules easily, but it’s worth confirming before you move ahead.

Step 2: Set Up Your LLC or Corporation

An S-Corp is not a type of business you register with the State of Texas. It’s purely a tax election. That means you need to have an entity already formed; typically an LLC or a C-Corp.

If you’re starting fresh, you’ll file formation documents with the Texas Secretary of State and get your Employer Identification Number (EIN) from the IRS. Only then can you elect S-Corp status.

Step 3: Complete IRS Form 2553

Form 2553 is where you officially tell the IRS you want your entity taxed as an S-Corp. The form isn’t long, but accuracy matters. You’ll need to provide:

• Your business name, address, and EIN
• The tax year you want the election to begin
• Shareholder information (even if it’s just you)
• Signatures from all shareholders

If you’re the only owner, this part is simple. If you have multiple owners, make sure everyone signs. A missing signature can invalidate the election.

Step 4: File on Time

Timing is one of the biggest pitfalls business owners run into.

The deadline is two months and fifteen days after the beginning of the tax year you want the S-Corp election to apply.

For example:

• If you want your election effective January 1, 2025, you must file by March 15, 2025.
• File later than that, and your S-Corp election won’t kick in until 2026 (unless you qualify for late-election relief).

This is why it’s smart to plan early in the year with your CPA.

Step 5: Submit the Form

You can send Form 2553 by mail or fax to the IRS, depending on where your business is located. Most businesses in Texas will send it to the IRS office in Ogden, Utah. Some tax software platforms also allow electronic submission, but many business owners stick with mail or fax to have a paper trail.

Keep a copy of the form and your proof of submission in your records.

Step 6: Wait for IRS Confirmation

After you file, the IRS will send you a letter confirming your election. This can take several weeks. Don’t skip this step. That letter is your official proof that your business is now recognized as an S-Corp.

If the IRS rejects your election, the notice will explain why. Sometimes it’s something simple like a missing signature or wrong date, which you may be able to fix.

Common Mistakes to Avoid

We’ve seen a few recurring issues trip up Fort Worth business owners:

• Filing too late. Missing the deadline can mean waiting a whole year for tax savings.
• Not paying attention to signatures. Every shareholder must sign, no exceptions.
• Forgetting to run payroll. Once your election is approved, you must start paying yourself a reasonable salary through payroll, you can’t wait until the end of the year.
  

The Bottom Line

Filing an S-Corp election is not complicated, but the details matter. Missing a date, forgetting a signature, or misunderstanding the rules can delay your savings.

If you think 2025 is the year for your business to become an S-Corp, start the process early. Gather your information, get Form 2553 filled out, and make sure it’s submitted before the March deadline. 

And if you’re unsure, working with a CPA can save you from costly mistakes. (Hint, hint!)