The EIN and IRS forms · A term for founders abroad
What is Form 2553?
The IRS form a corporation or LLC files to elect S-Corporation status; not available where any owner is a non-resident alien.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 43 of 105 in the glossary, filed under F.IRS: instructions for Form 2553
Form 2553, for a founder abroad.
Form 2553 makes the S-Corporation election, so the company's profit passes to its shareholders instead of being taxed in the company. It has to be filed no more than 2 months and 15 days after the start of the tax year it's meant to cover, and every shareholder signs.
A company with a non-resident alien owner can't make the election, and one whose shareholder becomes one loses it. An LLC that files Form 2553 doesn't also need Form 8832.
Sources: IRS: instructions for Form 2553.
What founders ask next.
- Should my foreign-owned LLC file Form 2553?
- No. A non-resident alien can't be an S-Corporation shareholder, so the election isn't available.
03 · See also
- The company itselfS-CorporationA tax election that lets a US corporation or LLC pass its profit through to its owners; not available if any owner is a non-resident alien.Read the term
- The EIN and IRS formsForm 8832The IRS form an LLC files to be taxed as a corporation instead of as a disregarded entity or partnership; rarely what a foreign owner wants.Read the term
- The EIN and IRS formsEINThe nine-digit tax number the IRS assigns to a business, and the first thing every US bank, payment processor and marketplace asks for.Read the term
- The EIN and IRS formsSSNThe US personal tax and benefits number for citizens and people authorised to work; not something a founder abroad has or needs to own a US company.Read the term
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