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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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Switching from C to S corporation

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: I thought that it would be better for my business to be taxed as a C corporation so that I could be covered by an HRA plan but now it looks like it might be better to be an S corporation. How do I switch?

A: IRS says that if the corporation wants to be treated as an S Corp for the current taxable year, then it must make its S election within the first two and one-half months of the corporation’s taxable year, or, at any time during the preceding taxable year by filing form 2553 "Election by a Small Business Corporation"


More resources:

MSAs HRAs, and HSAs: Which Health Plan Is Right for My Small Business?