How is an "S" corporation setup?

In the case of a corporation being formed for the first time, you must fill out and file I.R.S. Form No. 2553 prior to the 15th day of the third month of the corporation’s existence.

In Delaware, the effective date of incorporation is nominally the filing date; however, you can, if you wish, stipulate that your Certificate of Incorporation is not to become effective until a specified time subsequent to the time it is filed, providing that such time shall not be later than a time on the 90th day after the date of its filing.

In the case of an existing corporation, I.R.S. Form No. 2553 must be filed on or prior to the 15th day of the third month of your corporation’s tax year.

All shareholders must sign Form No. 2553 prior to filing it.

Mail Form No. 2553 via registered mail to your local I.R.S. office. Your receipt will record the legal date of your election of S corporation status and will stand up in court, should the I.R.S. later report that it never received your Form No. 2553.

DELAWARE BUSINESS INCORPORATORS, INC. (DBI) will be glad to provide you with the necessary form to elect S corporation status with the IRS, for a nominal service fee.