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I have a new client who set up an S Corp in January 2018 - owns 100%. Now, in May, he decides to add a shareholder. New Form 2553 need to be filed?

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Level 5

I have a new client who set up an S Corp in January 2018 - owns 100%.

Now, in May, he decides to add a shareholder. They will each own 50% of the S Corporation. Since the original Form 2553 was filed back in January 2018 with just the one shareholder's consent/authorization. Does a new Form 2553 need to be filed so that the new shareholder can consent?

Any help/guidance would be appreciated.

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Level 8

No, after a corporation becomes an s-corp you do not need the approval of new shareholders.

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Level 8

No, after a corporation becomes an s-corp you do not need the approval of new shareholders.

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