A Tax Election, Not a Structure
You still form an LLC or Corporation. The S Corp election changes IRS tax treatment — pass-through taxation with potential savings on self-employment taxes.
Part of your Business Formation order
Form Your Business with S Corp Tax Treatment Elected
Add the S Corp election during formation checkout. We prepare and file Form 2553 using your formation details — no separate tax filing needed.
Start Formation + Elect S Corp
$248+ State FeeFormation $149 + S Corp Election $99 · one-time
$248+ State FeeFormation $149 + S Corp Election $99 · one-time- Form 2553 prepared from your formation data
- IRS-compliant filing
- No separate tax accountant needed
What is an S Corp Election?
S Corp is a tax status, not a business type
You form an LLC or Corporation as normal. The S Corp election is a separate IRS filing (Form 2553) that changes how your business is taxed — it's not a different legal structure.
Time-Sensitive Filing
The S Corp election must be filed within 75 days of formation (or by March 15 for existing entities). Bundling it with formation ensures you never miss the deadline.
We Use Your Formation Data
Form 2553 requires the same information as your formation filing. We populate it automatically from your formation order — no duplicate data entry.
Why Elect S Corp Status
Who benefits most from the S Corp election
The S Corp election makes the most sense in specific situations — here's when it's worth adding to your formation order.
Save on Self-Employment Taxes
S Corp owners can pay themselves a reasonable salary and take the rest as distributions. Distributions are not subject to self-employment tax (15.3%) — a significant saving once you're profitable.
Pass-Through Taxation
Business income passes through to your personal tax return. No double taxation like a C Corporation. Losses can offset other personal income.
Do It at Formation, Not Later
Filing Form 2553 separately after formation is error-prone and time-sensitive. Bundling it with your formation order means it's handled immediately and correctly.
Best for Profitable Businesses
The tax savings typically outweigh the added payroll complexity when your business clears ~$40k–$50k in net profit. Below that, a standard LLC may be simpler.
How It Works
Formation + S Corp election in one checkout
We prepare Form 2553 from your formation data automatically. No separate filing, no duplicate forms.
Start Your Formation Order
Choose Corporation (or LLC, for LLC S Corp election). Begin your formation as normal in the wizard.
Add S Corp Election at Step 5
Check the S Corp election box. We auto-populate Form 2553 from your formation details — no duplicate data entry.
We File Form 2553 with the IRS
Your formation documents and S Corp election are filed together. IRS acknowledgment delivered to your dashboard.
Pricing
Formation + S Corp Election bundle
One order, one checkout. S Corp election is filed as part of formation — not a separate product.
S Corp Election Add-On
$99
one-time · no annual fee
$248+ State Fee
- Form 2553 auto-populated from your formation data
- Filed immediately after entity approval
- IRS acknowledgment delivered to dashboard
- Bundled with Business Formation
- No separate tax filing needed
Already formed? S Corp election can be added within 75 days — contact us.
FAQ
Frequently Asked Questions
Everything about the Formation + S Corp Election bundle.
Both. An LLC can elect to be taxed as an S Corp without changing its legal structure — it remains an LLC for liability purposes but is taxed like an S Corp. A Corporation can also elect S Corp status via Form 2553.
The company must be a domestic entity, have no more than 100 shareholders, have only one class of stock, and shareholders must be U.S. citizens or permanent residents. Foreign founders without U.S. residency typically cannot qualify.
You can request late election relief from the IRS, but it requires additional documentation and is not guaranteed. Filing at formation — through our bundle — eliminates this risk entirely.
Yes. S Corp owner-operators must pay themselves a "reasonable salary" through payroll before taking distributions. This adds payroll complexity, which is why S Corp status is most valuable above ~$40k–$50k in net profit.
Yes. The IRS issues a CP261 notice confirming your S Corp status. This is delivered to your Legal.com dashboard alongside your formation documents.
Limited Time OfferStart Formation + Elect S Corp — $248 + State Fee
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Form your business with S Corp status from day one
One checkout. Your formation documents and IRS S Corp election are filed together — no separate forms, no missed deadlines.
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