| Deciding to operate a business as an S | | | | pinpoint. For example, if a corporation making the |
| corporation is usually a pretty simple decision to | | | | S election exists on January 1, the S election |
| make because S status often saves a business | | | | needs to be made by March 15 of that same |
| thousands of dollars in taxes a year. | | | | year. In other words, March 15 is the fifteenth |
| Unfortunately, business owners often find the S | | | | day of the third month of the year. |
| corp timing rules confusing. The basic rule-- elect | | | | The fifteenth of March is not always the deadline, |
| by day fifteen of month three--only sounds | | | | however. For example, if a new corporation is |
| simple. | | | | formed on February 1, February is the first |
| Determining the S Election Deadline for a | | | | month of the first year. In this case, April is the |
| Corporation | | | | third month and so the S election may actually be |
| For corporations, the deadline can be easy to | | | | made as late as April 15. |