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Switching from C to S corporation
originally posted: 11/22/2006
reposted: 2/18/2011 This post has not
been recently reviewed or revised by the author and may be out of date.
If in doubt, please send a new question or ask for an update.
Q: I thought that it would be
better for my business to be taxed as a C corporation so that I could
be covered by an HRA plan but now it looks like it might be better to
be an S corporation. How do I switch?
A: IRS says that if the
corporation wants to be treated as an S Corp for the current taxable
year, then it must make its S election within the first two and
one-half months of the corporation’s taxable year, or, at any time
during the preceding taxable year by filing form 2553 "Election by a
Small Business Corporation"
Summary
More resources:
MSAs HRAs, and HSAs: Which Health Plan Is Right for My Small
Business? http://www.irs.gov/pub/irs-pdf/f2553.pdf
