Today Julie from Mountain View, CA says, “I’m just launching a new business. After talking to an attorney, I decided I wanted to be an S-corp. I incorporated on May 12, 2005. When I read the instructions for Form 2553 (Election by a Small Business Corporation), it stated that unless I filed for an S-corp. election by March 15, 2005 that I would be treated as a C-corp. for 2005 and the election wouldn’t go into effect until January 1, 2006.
Is there anything I can do to become an S-corp this year? I’d really like to deduct my business expenses on my personal tax return and don’t want to be stuck in C-Corp status this year. The guys at Business Filings, Inc. said that I’d have to be a C-corp. this year — yes, I am panic-stricken!”
Dear Julie,
LOL! Oh, that!
Take a deep breath. Let it out. Relax.
It’s OK. The due date is EITHER March 15th, OR the 15th day of the third month after you incorporate.
So, you incorporated on May 12, 2005. That means you have until July 15th to file the Form 2553.
Shame on the Business Filings Inc folks for giving out such bad information!
Incidentally, if you missed the filing deadline to be an S-Corporation, there’s still one last trick you can use…it’s such a secret that only the best tax professionals know it – because they actually read the instructions for the Form 2553 and it’s printed right there in the instructions.
You’ll find links to all kinds of corporate and tax information at TaxMama.com
- TaxMama.com :: Where taxes are fun!
- The Company Corporation :: Or 800-315-9420 Tell them TaxMama sent you to get $25 off.
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