The S corporation election is a popular entity tax classification in the United States. One of the greatest misconceptions about the S corporation is that it is a legal entity formed under State Law. This is not true. The S corporation is a federal tax election only and is not a legal entity type.

Many entrepreneurs choose the S election classification because it helps reduce their federal self-employment taxes. In this guide, we want to cover the most popular aspects of the S corporation election and what it means to operate an S corporation.

We will cover the following topics within this guide:

1. What is an "S" corporation under federal tax law.
2. What entities are eligible to make the S corporation election.
3. What are the ownership restrictions and operating limitations once you make the S corporation election.
4. What are the primary tax advantages and disadvantages of making the S corporation election.
5. How to complete the IRSForm 2553 election form.
6. What do you need to file when the S corporation is late.
7. What are the annual reporting requirements for my S corporation once the election is approved by the IRS.

Once you have completed this guide and reviewed the materials, you should have a better understanding of the S corporation election and how to file the election with the IRS.