Consequences of Failing to File Form 2553
If you do not file Form 2553 on time or file it incorrectly, your corporation will be taxed as a C corporation. This means double taxation on any business profits – first at the corporate level, then again at the shareholder level upon distribution as dividends.
Where to File 2553 Form in US ?
If you want the tax benefits of an S corporation, you must file IRS Form 2553, “Election by a Small Business Corporation.” This form elects the S corporation tax treatment. Filing this form in the proper manner is crucial to ensure your business receives the preferential tax treatment offered to S corporations.
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