How to elect S corporation status for your small business.

S Corporation
August 01, 2017

The main difference between a C corporation and an S corporation is how the corporation is taxed.

What is the Purpose of the Form 2553 Election by a Small Business Corporation?

The purpose of Form 2553 is to  convert your corporation  from a C corporation to an S corporation.  The S corporation status essentially changes the way a corporation is taxed. In S corporations the shareholders are taxed instead of the corporation itself. Whereas in a C corporation the shareholders and the corporation are taxed.