Before you elect
An S election changes how you take money out, including needing to pay yourself reasonable wages. It also adds costs for payroll and tax preparation. Your accountant can tell you if the savings justify it.
What matters on the form
- Timing. The IRS has deadlines for the election to take effect in a given year.
- Signatures. Every shareholder or member with an interest must generally sign.
- Eligibility. Limits apply to who may own shares and how many owners you can have.
After filing
Keep the IRS acceptance letter. Our process stores it in your portal when we receive a copy. Your agent stays the same.
Reviewed by Sean Webb, owner of Ohio Registered Statutory Agent LLC. Updated 2026-11-06. General information, not legal advice.