What is an S Corporation?
An S corporation is a standard corporation that has made a special election with the IRS for pass-through taxation. This means that an S corporation’s business income, losses, deductions, and credits flow through to its shareholders for federal tax purposes. S corporation shareholders report their share of the flow-through items on their personal tax returns, thereby avoiding double taxation (where income is taxed at both the corporate and personal levels).
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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