Check if an S-Corp Election is right for your business and apply (for admins)

Follow these steps during onboarding to reach the application. Each step helps us collect the business details needed for Form 2553.

1. Answer Myself when asked: Who is your company planning to pay with Gusto?

2. Enter your business name and ZIP code, then click Find my business. To add details manually, click I’ll enter my details manually.

3. Confirm your business name and address, and answer a few additional questions.

4. Choose your entity type. As a reminder, S corp election through Gusto is available only for single member LLC’s. We then ask whether you already elected S-corp tax status. If you do not know whether you already elected S-corp status you can check in two ways:

   • Check past tax filings:

     • Filed Form 1120-S → You are taxed as an S corporation.

     • Filed Form 1120 → You are a C corporation.

     • Filed Schedule C as part of your Form 1040 filing (sole proprietorship) or Form 1065 (partnership) → You are not an S-corp.

     • S-corp owners also receive a Schedule K-1, showing their share of income, deductions, and credits.

   • Ask the IRS: Call the IRS Business & Specialty Tax Line at (800) 829-4933. Have your EIN and business information ready. Ask whether Form 2553 was filed and approved for your business. If approved, the IRS would have mailed you a confirmation letter.

5. If we recommend the Solo plan, and you start setup, you can choose to explore S-corp status if your business qualifies.

6. Click Continue, then select one option:

   • Yes, I think it could be a good fit: You begin completing Form 2553 through Gusto.

   • I’m still figuring it out: We suggest connecting with an accountant. If you need one, visit our Partner Directory.

   • No, it's not the right time: You continue payroll setup. To revisit this later, go to Taxes & compliance in Gusto.

7. Complete the S-corp election questions.

What to expect when completing the S-corp election:

• We turn your answers into a completed Form 2553.

• You sign and send it to the IRS (by mail or fax).

• All shareholders must sign.

• Most businesses finish in about 15 minutes.

Before you begin, gather:

• Your formation documents from the state where the business was created

• Your EIN (Employer Identification Number)

We can mail you a printed form with prepaid postage, or you can print or fax it yourself and send it in.

Some parts of the form may require help from a lawyer, accountant, or tax professional. We tell you when we recommend this.

1. Formation details

We pre-fill some information using public business records from LexisNexis. Review and edit anything that looks incorrect. You will confirm:

• State of formation: Check your formation documents. This may differ from the state where your business operates.

• Formation date: This is usually on page one of your formation documents (look for a stamped date at the top). If the document lists an Effective Date, use that.

• Business name and address tied to your EIN: Use your EIN confirmation letter (CP 575) to confirm accuracy. If you cannot find it, use the IRS troubleshooting steps.

  • If your business name or address changed after you got your EIN, we ask for updated information.

2. Tax info

These questions help us complete the tax sections of Form 2553.

• Tax year: Most businesses use a calendar year (January 1–December 31). If you do too, answer Yes. If you're unsure, talk to a tax professional.

  • Are you an existing business (formed before the current tax year) and filing the S corp election after March 15 (with a calendar year), or a newly formed entity and filing 2 and ½ months after forming the entity? The IRS considers that late. We help you add a reasonable cause, such as “I didn’t know about the deadline.” You can also write your own reason.

  • Using a non-calendar tax year? You must fill out two sections by hand on the printed form (Part I, Question F and Part II). We recommend speaking with a tax professional for help.

• S-corp status start date: Choose when you want S-corp taxation to begin. Most people choose their formation date if the business was formed in that tax year or January 1 of the current year for existing businesses (formed before the current year). If you choose a past date, make sure you already followed S-corp rules for that period.

3. Personal info about shareholders

• Add personal details for each shareholder, such as SSN, phone number, and home address.

• QSST income: Most businesses answer No.

  • If you receive income through a Qualified Subchapter S Trust (QSST), you must fill out Part III of the form by hand. We recommend using a tax professional for this.

• Community property states: If you live in AZ, CA, ID, LA, NV, NM, TX, WA, or WI and are married or have a domestic partner (or ,the business was formed in one of those states while you were married or have a domestic partner) your spouse may also need to sign. They must be eligible to be a shareholder and listed with the other shareholders. If you do not know how to answer, we recommend using a tax professional.

4. Review the details and have Gusto mail the form (or print it yourself)

Review all details carefully. We recommend checking with a lawyer, accountant, or tax professional if anything is uncertain.

Then choose one option:

• Have Gusto mail the printed form and prepaid envelope

• Print the form yourself

The IRS deadline to submit an S Corp election is March 16, 2026. In most cases, the IRS still accepts late S Corp election filings, and you can still use Gusto to help complete the election after this date.

Important: All shareholders must sign Form 2553 in ink, using a “wet signature” (digital signatures are not allowed for this form).

If you choose to have Gusto mail your printed form:

1. Click Confirm mailing address.

2. Review or edit the address.

3. Click Mail me my form.

4. Your completed Form 2553 should arrive in 5–7 business days. All shareholders must sign it in ink—the IRS does not accept e-signatures.

   • Page 1: Sign and date

   • Page 2: Shareholder signatures and dates

   • Page 2, Column K: Shareholder consent

5. Place it in the prepaid envelope, and mail it to the IRS.

6. When the IRS approves your election, confirm it in Gusto. We then update your tax status so you can begin operating as an S-corp.

Note: We send our prepaid envelope by first-class mail, which does not include tracking or proof of delivery. If you need proof of the postmark date, the IRS usually requires certified mail or an approved private delivery service. If you are mailing Form 2553 close to the deadline or are worried the IRS may lose it or record the wrong postmark date, we recommend mailing it yourself using certified mail or a private delivery service

If you choose to print the form yourself:

1. Click Download your application.

2. Print the PDF of Form 2553.

3. Have all shareholders (and spouses if required) sign in ink. The IRS does not accept e-signatures.

   • Page 1: Sign and date

   • Page 2: Shareholder signatures and dates

   • Page 2, Column K: Shareholder consent

4. Mail or fax the form to the correct IRS location. We recommend using certified mail so you have proof of delivery.

Location of principal business, office, or agency

Mail to

Fax to

CT, DE, DC, GA, IL, IN, KY, ME, MD, MA, MI, NH, NJ, NY, NC, OH, PA, RI, SC, TN, VT, VA, WV, WI

Department of the Treasury

Internal Revenue Service

Kansas City, MO 64999

(855) 887-7734

All other states

Department of the Treasury

Internal Revenue Service

Ogden, UT 84201

(855) 214-7520

The IRS usually sends a decision letter within 60 days.

• If approved: Confirm your entity and tax status in Gusto—your S-corp election should have already been active since your application submission.

• If denied: You'll receive a letter with the reason. Send us the denial notice from your account—use the following details when you upload it:

  • Agency the notice is from: Internal Revenue Service

  • What the notice is about: Not listed

  • Year and time frame: Choose the most applicable or select I'm not sure, then click Submit.

To view the completed S Corp election form in Gusto:

1. Sign in to your admin account in Gusto.

2. Go to Documents.

3. Find and click Form 2553 to download it.

Right now, you cannot use Gusto to issue S-corp distributions (owner withdrawals). You must process distributions directly through your bank.

We also do not handle taxes on distributions. We only manage payroll taxes.

We recommend working with an accountant to ensure everything is set up correctly in and outside of Gusto.

Common questions about the S Corp election application in Gusto.

Q: Can I submit Form 2553 online?

A: No. The IRS requires ink signatures. You must print, sign, and mail or fax the form.

Q: Can I run payroll before the IRS approves my S-corp status?

A: Yes. Once you file the S-corp election, you can operate as an S-corp. We recommend talking with your tax advisor to understand any risk of the election being rejected and to decide whether you want to wait for IRS approval before running payroll. Make sure your payroll records follow S-corp rules starting on your chosen effective date.

Q: What if I use a fiscal year instead of a calendar year?

A: You must fill out additional sections on the printed form. We give you blank areas to fill in, but a tax professional can help.

Q: What if my application is late?

A: Late filings are common. Common reasons include not knowing the deadline or forming the business after it. You can submit a reasonable cause statement.

Q: Why does my spouse need to sign?

A: In community property states, assets acquired during marriage may belong to both spouses. That includes business shares, so your spouse’s signature may be required. Some exceptions apply, such as property received as a gift or inheritance. If you’re unsure what applies to you, we recommend speaking with your tax advisor.

Q: What if I have a special trust (QSST)?

A: You must complete Part III of Form 2553 by hand. We recommend using a tax professional. Gusto won’t do this part for you.

Q: I recently switched to S-Corp taxation. Can I switch to the Gusto Solo plan?

A: Yes. If you're the only active employee (yourself), you can change your plan: Go to the Company profile (bottom left) → Plan & billing.

We recommend working with a lawyer, accountant, or tax professional to make sure your application is complete and accurate. If you do not have one, try our Partner Directory.

If you have questions about using Gusto, send us a message from the help icon in your account.