Form 2553, known as "Election by a Small Business Corporation," is essential for U.S. businesses choosing to be treated as an S corporation for tax purposes. This election allows corporate income and losses to pass to shareholders for federal tax. The form requires basic corporation information, and all shareholders must consent to the election.
Eligibility includes having only allowable shareholders, like individuals and certain trusts, with a limit of 100 shareholders, and the corporation must have only one class of stock and be domestic. It's crucial to file the form within two months and 15 days after the start of the tax year for which the election is effective, or during the previous tax year.
Form 2553 is vital for business-tax strategy, emphasizing the need for timely and compliant planning for small businesses.

In this article you can find useful information about filling out 2553 form.