Corporate compliance · S Corp election · All 50 states
S Corp is a tax election, not an entity type. You form an LLC or a corporation first, then ask the IRS to tax it as an S Corp on Form 2553. We form the company in any of the 50 states, and we can help with the election.
Lobi Space is not a law firm or a tax advisor. Talk to your accountant before you elect.
S Corp in one look
An S Corp is how the IRS taxes a company that elected it. The company itself is still an LLC or a corporation registered with the state where it was formed.
Forming first? Read How to Set Up an LLC in Illinois: The Complete Guide or How to Form a Corporation in Illinois.
Profits pass through to the owners' tax returns, and owners who work in the business are paid through payroll. Ask your accountant whether the payroll requirement is worth it at your income level.
| S Corp | LLC | C Corp | |
|---|---|---|---|
| What it is | A federal tax election, not an entity type | A business you register with the state | A corporation, taxed on its own |
| Taxes | Profits pass through; owners who work take a salary | Profits pass straight to your tax return | Corporate tax on profits, then tax on dividends |
| Owners | Up to 100 shareholders, US citizens or residents, one class of stock | Members | Shareholders, with room for outside investors |
| How you get it | Form an LLC or corporation, then file Form 2553 | File Articles of Organization | File Articles of Incorporation |
The main limits, in plain words. Your accountant confirms the rest for your situation.
The election is made by a company that already exists. Form it first.
An S Corp can have at most 100 shareholders.
Every share carries the same rights to profits and to what is left if the company closes.
Shareholders are generally US citizens or residents. Your accountant confirms who qualifies.
Step by step
We check your name, file your Articles with the state and prepare your EIN.
Ask whether the payroll requirement is worth it at your income level.
File within 2 months and 15 days of the start of the tax year you want the election to begin.
Owners who work in the business are paid a salary through payroll once the election is in place.
Already formed? We prepare the election for you to sign and file.
Priced the same as a corporation, confirmed before anything is prepared
Form the company first. Most small businesses start as an LLC.
+ state fee · EIN preparation included in every package
Planning to raise money or issue stock? Start with a corporation.
+ state fee · bylaws included from Pro ($195)
Forming in Illinois? The state charges $150 for an LLC and $175 for a corporation including the minimum initial franchise tax, passed through at cost. See every package and price.
All 50 states
Illinois is handled in house by our Chicago team. Every other state is filed through our partner network, at the same clear prices. State fees are passed through at cost and confirmed before we file.
Weighing privacy? Anonymous LLC in 2026: What Changed When FinCEN Dropped BOI Reporting.
FAQ
Read more on the Lobi Space blog, or compare formation plans. Once you elect, keep the company current with the Illinois annual report and a certificate of good standing.
No. S Corp is a tax election, not an entity type. Your company is still an LLC or a corporation with the state where it was formed. The election changes how the IRS taxes it.
Yes. We can prepare Form 2553 with your filing so the IRS treats your LLC or corporation as an S Corp. Ask your accountant whether the payroll requirement is worth it at your income level.
Within 2 months and 15 days of the start of the tax year you want the election to take effect. Miss it and the election usually starts the next tax year. Your accountant can tell you if relief applies.
Up to 100 shareholders, generally US citizens or residents, with one class of stock. Your accountant confirms whether your owners qualify.
Most small businesses start as an LLC because the paperwork is lighter and the profits pass straight to your tax return. A corporation makes sense when you plan to raise money from outside investors or issue stock. We file both, in any of the 50 states.
No. Lobi Space is not a law firm or a tax advisor. We prepare and file documents at your direction. Talk to your accountant or a CPA before you elect.
An S Corp is priced the same as forming a corporation: Starter $145, Pro $195 or Premium $275, one time, plus state fees passed through at cost. Already formed? Talk to us and we confirm the price before anything is prepared.
Lobi Space is not a law firm, and no one on our staff, including our notary public, is an attorney licensed to practice law in Illinois. We prepare and file formation documents only at your direction, using the information you give us. We cannot give legal or tax advice, tell you which entity type to choose, or review your situation the way a lawyer would. For those decisions, talk to an Illinois attorney or a CPA.
Notice from our notary public (Illinois law, 5 ILCS 312/3-103)
I AM NOT AN ATTORNEY LICENSED TO PRACTICE LAW IN ILLINOIS. I AM NOT ALLOWED TO DRAFT LEGAL DOCUMENTS OR RECORDS, NOR MAY I GIVE LEGAL ADVICE ON ANY MATTER, INCLUDING, BUT NOT LIMITED TO, MATTERS OF IMMIGRATION, OR ACCEPT OR CHARGE FEES FOR THE PERFORMANCE OF THOSE ACTIVITIES.
Guides
The four steps to forming an Illinois LLC, what each one costs in 2026, and the annual filing that catches people in year two.
Filing articles of incorporation in Illinois takes about twenty minutes. The form asks eight things, and one is a tax decision disguised as a paperwork question.
Plenty of Illinois companies killed by the Secretary of State were not failing. One report went unfiled, a notice went to an address nobody checks, and months later the state dissolved them. The filing costs $75.
Packages from $145 plus state fees. Tell us you want the S Corp election and we prepare Form 2553 for your signature.
Lobi Space is not a law firm and does not give legal advice; we prepare and file documents at your direction.
