S-Corp Election in Maryland (Form 2553)

Q: What if I file Form 2553 late?

You can request relief under Rev. Proc. 2013-30. Write \u201cFILED PURSUANT TO REV. PROC. 2013-30\u201d prominently in the top margin, show reasonable cause and diligent corrective action, and supply shareholder statements confirming consistent reporting. Relief must be requested within 3 years and 75 days of the intended effective date.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

Maryland has no separate state S-corporation election. You make the election federally on IRS Form 2553, filed no more than 2 months and 15 days after the beginning of the tax year the election takes effect. Maryland then treats the company as a pass-through entity that files Maryland Form 510 with the Comptroller of Maryland.

Quick Answer

Federal form: IRS Form 2553, Election by a Small Business Corporation
Authority: Internal Revenue Code section 1362(a)
Deadline: No more than 2 months and 15 days after the tax year begins
Separate Maryland election: None - Maryland follows the federal election
Maryland return: Form 510, Pass-Through Entity Income Tax Return
Shareholder consent: Required from every shareholder
Late relief: Rev. Proc. 2013-30, within 3 years and 75 days

Two Layers: Federal Election, Maryland Filing

An S corporation is a federal tax classification, not a type of company. You do not form an "S corp" in Maryland; you form a corporation or an LLC with the Maryland State Department of Assessments and Taxation, and then elect S treatment with the IRS. Maryland does not run a parallel state election form. Once the IRS accepts the federal election, the Comptroller of Maryland treats the entity as a pass-through entity for state purposes and it files Maryland Form 510.

Keeping the two layers straight avoids the most common Maryland mistake: assuming that a state filing is also needed to "become an S corp" in Maryland, or conversely assuming that the federal election removes the state return. Neither is true. See S-corp vs LLC for the underlying comparison.

What Form 2553 Does

The IRS describes Form 2553 as the form "a corporation or other entity eligible to be treated as a corporation files ... to make an election under section 1362(a) to be an S corporation." An LLC can use it too, because an LLC that is eligible to be treated as a corporation may make the S election directly on Form 2553. The election changes how profits are reported and how the owner's compensation is characterized; it does not change the entity's status under Maryland corporate law.

The 2-Month-and-15-Day Deadline

The Form 2553 instructions set the deadline precisely: the form must be filed no more than 2 months and 15 days after the beginning of the tax year the election is to take effect, or at any time during the tax year preceding the tax year it is to take effect. The instructions also explain how to count: the two-month period begins on the day that corresponds to the tax year start date and ends with the close of the day before the numerically corresponding day of the second following calendar month. If there is no corresponding day, the period ends on the last day of that month.

For a calendar-year Maryland company that wants S treatment starting January 1, that means the election is due by mid-March of the same year. Filing later usually pushes the effective date into the following tax year unless you qualify for late-election relief.

The election is not the corporation's alone. Each shareholder consents by signing and dating either in column K of Form 2553 or on a separate consent statement. Spouses who hold a community interest in the stock must both consent, as must each tenant in common and each joint tenant. A missing consent is one of the most common reasons the IRS rejects an otherwise timely election, so collect signatures before you file rather than after.

Late-Election Relief Under Rev. Proc. 2013-30

If you miss the deadline, the IRS provides relief under Rev. Proc. 2013-30. A late Form 2553 must show "FILED PURSUANT TO REV. PROC. 2013-30" prominently in the top margin. Relief requires reasonable cause for the delay and diligent action to correct it once discovered, and the corporation must be able to provide statements from all shareholders confirming they reported their income on all affected returns consistently with the S election. Relief requests must be made within 3 years and 75 days of the intended effective date.

Where to File Form 2553

Form 2553 is filed with the IRS, not with any Maryland agency. The IRS notes that the filing address changed for filers located in certain states, and directs filers to its "Where to File Your Taxes for Form 2553" page for the address that applies to the entity's location. Check that page rather than reusing an address from an older instruction booklet.

Maryland Form 510: The State Return

Once the federal election is in place, the entity files Maryland Form 510, Pass-Through Entity Income Tax Return, with the Comptroller of Maryland. Maryland defines a pass-through entity to include partnerships under IRC section 761, S corporations as defined in IRC sections 1361 and 1362, limited liability companies under Maryland Corporations and Associations Article section 4A-101, and business trusts under section 12-101. Form 510 is generally an information return: the items of income or loss pass through to the members and are taxed on the members' Maryland income tax returns. The form is also how the entity remits pass-through entity nonresident tax.

Maryland publishes a companion Form 511 booklet for electing pass-through entities, and Form 510/511D for the declaration of estimated income tax. Returns are mailed to the Comptroller of Maryland, Revenue Administration Division, 110 Carroll Street, Annapolis, Maryland 21411-0001, or filed electronically. See Maryland LLC tax filing.

Reasonable Compensation and Payroll

An S election only saves money if the owner-employee is on payroll. The owner must take reasonable compensation as W-2 wages subject to employment taxes; only the remaining profit is distributed without self-employment tax. That means registering for federal and Maryland employer withholding, running payroll, and filing employment tax returns. Those recurring costs are the reason the election rarely pays for a very small operation. Compare with the default treatment in the business tax hub and estimate the baseline with the self-employment tax calculator.

Keep the Maryland Entity in Good Standing

The S election does nothing for your state entity obligations. A Maryland LLC or corporation still files its annual report and personal property return with the State Department of Assessments and Taxation, still maintains a Maryland resident agent, and still holds any required Maryland business licenses. Confirm the current annual report fee and due date with SDAT before you budget; the Comptroller and SDAT are separate agencies with separate deadlines. Related reading: Maryland annual report and Maryland operating agreement.

Revoking or Losing the Election

An S election continues until it is revoked or terminated. Revocation requires the consent of shareholders holding more than half of the shares and a written statement to the IRS. Termination can also happen involuntarily if the corporation stops meeting the eligibility requirements - for example, by issuing a second class of stock or admitting an ineligible shareholder. If you later close the business entirely, see how to dissolve an LLC in Maryland.

Frequently Asked Questions

Does Maryland have its own S-corp election form?

No. Maryland has no separate state S-corporation election. The election is made federally on IRS Form 2553 under Internal Revenue Code section 1362(a). Once the IRS accepts it, the Comptroller of Maryland treats the company as a pass-through entity, and the entity files Maryland Form 510 for the state.

When is Form 2553 due?

The IRS instructions require filing no more than 2 months and 15 days after the beginning of the tax year the election is to take effect, or at any time during the preceding tax year. For a calendar-year company electing effective January 1, that puts the deadline in mid-March of the same year.

What if I file Form 2553 late?

You can request relief under Rev. Proc. 2013-30. Write "FILED PURSUANT TO REV. PROC. 2013-30" prominently in the top margin, show reasonable cause and diligent corrective action, and supply shareholder statements confirming consistent reporting. Relief must be requested within 3 years and 75 days of the intended effective date.

Can a Maryland LLC elect S-corp status?

Yes. An LLC that is eligible to be treated as a corporation can make the S election directly on Form 2553. The company remains an LLC under Maryland law, keeps filing with the State Department of Assessments and Taxation, and files Maryland Form 510 as a pass-through entity for state income tax.

What Maryland return does an S corporation file?

Maryland Form 510, the Pass-Through Entity Income Tax Return. Maryland defines pass-through entities to include S corporations under IRC sections 1361 and 1362. Form 510 is generally an information return; income and loss items pass through to the members and are taxed on their Maryland returns, and the form also remits nonresident tax.

Do all shareholders have to sign Form 2553?

Yes. Each shareholder consents by signing and dating either column K of Form 2553 or a separate consent statement. Spouses holding a community interest in the stock must both consent, and each tenant in common and joint tenant must consent. A missing consent is a common reason the IRS rejects an election.

Sources

IRS - About Form 2553, Election by a Small Business Corporation (section 1362(a); filing address change).
IRS - Instructions for Form 2553 (2 months and 15 days rule; shareholder consent; Rev. Proc. 2013-30; 3 years and 75 days).
Comptroller of Maryland - Pass-Through Entities (state treatment and filing information).
Comptroller of Maryland - Maryland Form 510, Pass-Through Entity Income Tax Return.
Comptroller of Maryland - Form 510 Pass-Through Entity Booklet (definition of pass-through entity; IRC 1361 and 1362; mailing address).
Comptroller of Maryland - Form 511 Electing Pass-Through Entity Booklet.
Comptroller of Maryland - Form 510/511D, Declaration of Estimated Income Tax.
Comptroller of Maryland - Business Tax Forms and Instructions.
Comptroller of Maryland - Business Income Tax Forms.
IRS - Get an Employer Identification Number (free EIN).

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the IRS and the Comptroller of Maryland before acting.