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I started an S Corporation this year and I'm wondering whether or not it will be in effect this year or next. I previously was organized as a sole proprietorship.


The BIDaWIZ Team's Answer:

If this is your first year as a corporation, you may be able to file as a short-year S Corporation if you meet certain requirements. Specifically, you must elect S Corporation status via Form 2553 within two months and 15 days from the start of the company's tax year or incorporating.
This would not be the case if your business was previously a C Corporation with a prior tax year. In that case, you would only qualify for the S Corporation status during the current year if you qualified for a late election.
References: IRC Section 1361(d)(2)(D)
State: Illinois

The BIDaWIZ Team



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