Financial Glossary
Form 2253 (Misspelling of IRS Form 2553)
Form 2253 is a frequent misspelling of IRS Form 2553, Election by a Small Business Corporation. Form 2553 is the form an eligible corporation or LLC files to elect to be taxed as an S corporation, which generally passes income, losses, and credits through to shareholders. There is no separate IRS form numbered 2253.
Problem & Application
Choosing S corporation status can change how an owner-operated business is taxed, particularly the split between salary and distributions for self-employment tax purposes. Because the election has timing rules and eligibility requirements, filing late or incorrectly can leave you on the default tax treatment for the year. Owners typing 2253 into a search bar are usually trying to formalize this election and should confirm the form number and current IRS instructions before filing.
In Short
If you are looking for Form 2253, you want Form 2553, the S corporation election, and the timing and eligibility details are worth getting right.