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2553 Election

sharpcougar
Level 3

ProSeries community - Here are the facts:

 

1. Company incorporated in 2017. Intention from the onset was to be treated as S Corp.

2. Sole owner of company operated under schedule C from 2017 through 12/31/2020.

3. There was 0 activity in corporation and no EIN was created.

4. Owner just applied for EIN last month.

5. Owner wants to be treated as an S corporation but it's been more than 3 years and 75 days.

Do we file as a C corp for short year 2017, 2018, 2019 and then -- make the election with 2020 with form 2553 attached? all returns will have zero activity. Owner will have a lot of activity in 2021 and when we file 2021 return then that will be second year as S corp. Thoughts?

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qbteachmt
Level 15

2 sort of negates 1. Did they run payroll?

3 sort of negates what they consider to be "start date."

4 sort of negates everything else.

In other words, are you sure this corporation existed or exists?

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