Ohio Election of 'S' Corporation Status and Instructions — IRS 2553 Key Points: 1. Definition: The Ohio Election of 'S' Corporation Status refers to the process through which a corporation in Ohio elects to be treated as an S corporation for federal tax purposes. 2. Importance: By electing 'S' Corporation status, a corporation can pass its income, deductions, and losses through to its shareholders, thereby avoiding double taxation. 3. IRS Form 2553: The IRS requires corporations to file Form 2553 to make the election for 'S' Corporation status. 4. Ohio-specific Instructions: In addition to the federal requirements, corporations in Ohio must also comply with state-specific guidelines when making the election. 5. Eligibility: To qualify for 'S' Corporation status in Ohio, the corporation must meet certain criteria, such as having 100 or fewer shareholders, all of whom are U.S. citizens or residents, and having only one class of stock. 6. Benefits: The election offers various benefits, including limited liability for shareholders, potential tax savings, and flexibility in allocating income and deductions. 7. Different Types: There are no different types of Ohio Election of 'S' Corporation Status. However, there might be variations in the process or requirements based on the specific circumstances of each corporation. Instructions for Ohio Election of 'S' Corporation Status — IRS 2553: 1. Obtain a copy of IRS Form 2553: Visit the official IRS website or any authorized tax-filing software to download Form 2553. 2. Provide necessary corporate information: Fill in the required details about the corporation, including its legal name, address, and employer identification number (EIN). 3. Specify the desired effective date of the election: Indicate the date on which the corporation wishes to begin operating as an 'S' Corporation for federal tax purposes. Note that this date must be within the current tax year or during the following tax year. 4. Include shareholder details: List all shareholders' names, addresses, social security numbers, and ownership percentages. Ensure that each shareholder qualifies as per the eligibility criteria. 5. Obtain shareholder consent: Provide space for each shareholder to indicate their consent for the corporation's election of 'S' Corporation status. 6. Complete additional state-specific requirements: Ohio may have additional requirements or forms that need to be filled out. Refer to the Ohio Department of Taxation's website or consult with a tax professional to ensure compliance with state regulations. 7. Submit the completed Form 2553: Mail the completed and signed Form 2553, along with any necessary attachments or state-specific forms, to the IRS address provided in the form's instructions. 8. Receive confirmation: The IRS will review the submission and confirm receipt of the election. It is essential to keep a copy of the filed Form 2553 and related documents for future reference. 9. Monitor IRS communication: The IRS may request additional information or clarification regarding the election. Carefully review and respond to any correspondence from the IRS in a timely manner. 10. Consult with a tax professional: Due to the technicalities involved in the election process, it is advisable to seek guidance from a tax professional or accountant to ensure compliance and maximize the benefits of electing 'S' Corporation status in Ohio.