Talk:Sub "S" to Add Shareholder

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"Sub "S" to Add Shareholder"

Do we need to file a new form 2553 When a shareholder is added to an existing "S" Corporation? Is There anything that needs to be done?

Time4Tax

Posted on: June 23, 2005


Form 2553 need only be filed when the corporation originally elects S Corporation status. There is no requirement to file the form again when shareholders are added or dropped from the S Corp.
You may want to review the 2553 instructions to be sure your new shareholder is an eligible S Corp shareholder.
Posted by: DaveJohnson
Responded to on: June 29, 2005
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