BizTerm Definition
Sub S Election, Subchapter S Election
Short Definition
IRS Request to become a S Corporation
Full Definition

A request by a C Corporation to the IRS to become a S Corporation where all profits or losses are taxed to the shareholders of the corporation rather than to the corporation itself. The election is requested using IRS Form 2553 and must be submitted to the IRS by the 15th day of the 3rd month of the corporation's tax year.

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