Important Eligibility Notice

To proceed with this form, your business must meet the following qualifications for S-Corporation status:

• You are operating as either a Corporation or a Limited Liability Company (LLC).
• Your business has 100 or fewer shareholders, and all shareholders are U.S. citizens or residents.
• You have only one class of stock.

If your business does not meet these qualifications, you are not eligible to complete this form for S-Corporation election. Please contact us for further assistance.

Important Information Regarding S-Corporation Election Signatures

When electing S-Corporation status, the following individuals are generally required to consent to the election:

• All shareholders or former shareholders who owned stock on or before the date the election is made, if filing before the effective date.
• All shareholders or former shareholders who owned stock at any time between the effective date of the election and the date the election is made, if filing on or after the effective date.
• If a single-member LLC owns stock, the LLC’s owner must consent to the election and be eligible as an S-Corporation shareholder.
• If shares are held by a nominee, guardian, or custodian, the consent must come from the person for whom the shares are held.

Please note that this information is provided as general guidance only and is not intended to be tax or legal advice. It is recommended that you consult with a qualified tax professional or attorney to ensure compliance with IRS requirements and regulations.

For more detailed IRS guidelines on who must consent to the S-Corporation election, please refer to IRS Form 2553 Instructions.

Qualified Subchapter S Trust (QSST) Election

This section is for shareholders who are trusts making the QSST election. If a Qualified Subchapter S Trust (QSST) holds stock in the S-Corporation, the income beneficiary must make an election under Section 1361(d)(2) to be treated as the owner of the trust’s stock for tax purposes.

The signed QSST election statement must be mailed with your Form 2553. This statement declares that the income beneficiary elects to have the trust treated as a QSST under Section 1361(d)(2) and agrees to report all income related to the trust as required by Section 1361(d)(1)(B).

For more information, refer to the IRS instructions for Form 2553 or consult a tax professional.

Section II: Selection of Fiscal Year

In this section, please indicate if your business is using a fiscal year that does not follow the standard calendar year (January 1 – December 31). If your business uses a different fiscal year, you will need to explain why and provide supporting details or documentation.

• Natural Business Year: Select this option if your business’s operations naturally align with a specific period (for example, a seasonal business).
• Ownership Tax Year: Select this if your fiscal year aligns with the tax years of the business owners.
• Other: If neither option applies, please provide an explanation in the space provided.

Please note that this section is for general guidance and should not be considered tax or legal advice. It is recommended that you consult with a qualified tax professional if you are unsure which option to select.