The standard deadline for S-Corp election is March 15 for calendar year businesses. If you wanted S-Corp treatment starting in the prior tax year, that deadline has likely passed. But missing the deadline doesn’t necessarily mean you’re out of luck.

The IRS allows late S-Corp elections through Revenue Procedure 2013-30. To qualify, several conditions must be met. The business must have intended to be classified as an S-Corp from the intended effective date. The only reason for missing the deadline should be failing to file Form 2553 on time. All shareholders need to have reported their income consistent with S-Corp treatment. And you must be filing within 3 years and 75 days of the intended effective date.

That 3 years and 75 days window matters more than most people realize. If you wanted S-Corp status starting January 1 of last year, you likely still have plenty of time to file a late election.

The election process involves filing Form 2553 with a statement explaining the late election and confirming you meet the relief requirements. This isn’t something to attempt on your own. You need a CPA or tax professional to prepare the election, ensure you qualify for late relief, and handle it correctly. The IRS can reject elections that don’t meet all the requirements.

Consider whether S-Corp status actually makes sense before pursuing the election. The tax savings come from reducing self-employment tax by paying yourself a reasonable salary and taking distributions for the remainder. But S-Corps bring additional compliance requirements. You’ll need payroll services to pay yourself a reasonable salary, plus quarterly tax deposits and more complex tax returns. For some businesses the savings outweigh the added complexity. For others, the costs eat up any potential benefit.

Bookkeepers handle ongoing record-keeping, but the election itself is tax work. Once approved, having a Hancock County bookkeeper helps you maintain the records and processes an S-Corp requires, including accurate tracking of shareholder distributions and owner compensation.

If you’re considering an S-Corp election, talk to your CPA soon. They can calculate whether you’d actually save money and help with the election process if it makes sense for your business.