Subchapter S corporations (S Corporations) have grown in popularity in recent years, largely due to their unique tax structure and the perception of enhanced liability protections for owners. It is also relatively simple for a business to make elect Subchapter S status (S Election)—it can be accomplished easily by filing Form 2553, Election by a Small Business Corporation, with the IRS. Often, owners of an entity initially formed as an LLC decide after a few years of operations that they would be better served as an S Corporation, given either the prospect of additional investors, or purely for tax planning and structuring purposes. After filing the Form 2553, no further action is needed other than the transition to an 1120-S year-end filing, and the business owner considers the matter closed.