I just started a business and incorporated it. I filled out form 2553 for s corp election. Do I have to wait to operate my business until I get s corp approval or can I go ahead and operate now?
If you registered the business in "active" status with your state as an LLC (single or multi-member LLC, it doesn't matter) you are considered to be "open for business" on the date you told the state it was "active". Unless there are some extenuating circumstances (and I can't think of any unless you're a convicted felon for violating tax laws in the past) it's fairly safe to assume your 2553 will be approved.
When did you send the IRS the 2553? I would fully expect you to have a response within 60 days; 90 at the most.
A couple of comments:
- Hopefully you sent the form certified mail return receipt requested. This is inexpensive insurance as the taxpayer always has the burden of proof to support that the election was mailed.
- Take a look at the instructions for the 1120S page 2 under "Who Must File" https://www.irs.gov/pub/irs-pdf/i1120s.pdf
- Some states require that the IRS acceptance letter be attached to the initial state return. Check out your state requirements.
- I wouldn't file until you receive the IRS acceptance letter, or have proof of mailing as noted above in bullet number 1.
Follow-up to my initial comments:
- I assume you have a "successful transmission" "receipt"
- I would still recommend you check your state filing requirements as noted previously
- Assume the fax number you removed agrees with the Form 2553 instructions on page 3 of the attached link https://www.irs.gov/pub/irs-pdf/i2553.pdf