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Form 8832 vs Form 2553: Choosing Your Entity’s Tax Classification
Last updated October 27, 2026
Quick answer
Form 8832 lets an LLC or other eligible entity choose to be taxed as a corporation, a partnership or a disregarded entity. Form 2553 lets a corporation, or an LLC, elect S corporation status so income passes through to its owners. An LLC that wants S status files only Form 2553. Nonresident aliens and foreign companies can’t be S corporation shareholders, so for a foreign-owned company the choice is the default treatment or a Form 8832 election to be taxed as a C corporation.
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Form 8832 vs Form 2553 side by side
Form 8832
Form 2553
What it does
Chooses classification: corporation, partnership or disregarded entity
Elects S corporation status (pass-through taxation)
Who can file
Eligible entities — most LLCs and many foreign entities
Domestic corporations, and LLCs eligible to be taxed as corporations
Ownership limits
None for the election itself
Up to 100 shareholders, all eligible, and one class of stock
Foreign owners
Allowed
Not allowed — no nonresident alien or foreign company shareholders
Timing
Effective up to 75 days before or 12 months after filing
Within 2 months and 15 days of the start of the tax year, or any time in the year before
Signatures
Every member, or an officer, manager or member authorized to sign
Every shareholder must consent
Changing later
Generally no new change for 60 months
After a revocation or termination, generally no new S election for 5 years
Missed deadline
Relief possible within 3 years and 75 days
Relief possible with reasonable cause
Which election fits
• The default works for you (single-member LLC disregarded, multi-member LLC a partnership) → file neither
• You want your LLC taxed as a C corporation → Form 8832
• You want S corporation taxation and every owner is an eligible U.S. shareholder → Form 2553 only
• An owner is a nonresident alien or a foreign company → S status isn’t available; Form 8832 to elect C corporation is the alternative
• A foreign entity choosing its U.S. tax classification → Form 8832
How to decide between Form 8832 and Form 2553
1. Know your default classification
A single-member LLC is disregarded and a multi-member LLC is a partnership unless it elects otherwise. If the default suits you, no election is needed.
2. Check S corporation eligibility
All owners must be eligible shareholders — U.S. citizens or residents, certain trusts and estates — with no more than 100 shareholders and one class of stock. A single nonresident alien or foreign company owner rules it out.
3. Eligible and want S status? File Form 2553
File within 2 months and 15 days of the start of the tax year the election should apply to, with every shareholder’s consent. An LLC doesn’t need a separate Form 8832.
4. Want C corporation treatment? File Form 8832
Elect to be classified as a corporation, choosing an effective date no more than 75 days before or 12 months after the filing date.
5. Plan the filings that follow
A corporation files Form 1120 every year, and one that is 25% or more foreign-owned also files Form 5472. A foreign-owned single-member LLC that stays disregarded files a pro forma Form 1120 with Form 5472.
6. Remember the lock-in
After a Form 8832 change, another change is generally not allowed for 60 months, so choose with the long term in mind — and get professional advice if you are unsure.
Form 8832 vs 2553: frequently asked questions
Do I need to file Form 8832 before Form 2553?
No. An eligible LLC that files a timely Form 2553 is treated as also electing to be taxed as a corporation, so a separate Form 8832 is not required.
Can a foreign-owned LLC be taxed as an S corporation?
No. Nonresident aliens and foreign companies can’t be S corporation shareholders, so a company with such an owner can’t make or keep an S election.
Should a foreign-owned single-member LLC elect corporate status?
It depends on the business. Staying disregarded means filing a pro forma Form 1120 with Form 5472 each year. Electing C corporation status means filing a full Form 1120, paying federal corporate income tax on profits, and still filing Form 5472. This is a decision to make with a tax professional.
What are the deadlines for each form?
A Form 8832 election can take effect no more than 75 days before the filing date, so file within 75 days of when you want it to start. Form 2553 is due no later than 2 months and 15 days after the start of the tax year — March 15 for a calendar-year company — or any time in the preceding year.
What if I missed the deadline?
Both have late-election relief. For Form 8832 it may be available within 3 years and 75 days of the intended effective date; for Form 2553, if you had reasonable cause. Conditions apply to both.
Related guides
Form 8832: Choosing How Your LLC Is TaxedForm 2553: How to Elect S Corporation StatusHow to File Form 5472 for a Foreign-Owned U.S. LLCThis guide is general information about IRS requirements, not tax or legal advice. Rules and amounts can change — check the current IRS instructions or a tax professional for your situation. How we write our guides