Best S Corp Election Form Tips for OnlyFans Creators

If you’re making consistent money on OnlyFans, taxes can quickly eat into your profits. Filing the S Corp election form can help lower your tax bill, but only if you understand what you’re doing. This guide walks you through what an S Corporation is, how to file the form, and what to expect after the election.

What Is an S Corporation?

An S Corporation, or S Corp, is a tax status you choose by filing a specific form with the IRS. It’s not a type of business entity like an LLC or a Corporation. Instead, it changes how your business income is taxed for federal tax purposes.

The biggest benefit of filing for S Corporation election is tax savings. When your business is taxed as an S Corp, you don’t pay self-employment tax on all your income. Instead, you pay yourself a salary, which is taxed like normal job income. Then, the rest of your profits are paid out to you as distributions, which are not subject to self-employment tax.

Before choosing an S Corp structure, creators should first understand how OnlyFans taxes apply at the sole proprietor or LLC level.

Why Should OnlyFans Creators Consider S Corp Election?

If your OnlyFans income is above $75,000 per year, you are likely paying more in taxes than you need to. An S Corp election can help you cut that bill significantly.

Benefits of S Corp Status:

• Lower self-employment tax
• More money kept in your pocket
• Separation between personal and business finances
• Professional business structure for long-term growth

For example, if you bring in $120,000 per year, you could pay yourself a reasonable salary of $60,000. You’ll only pay self-employment tax on that salary. The remaining $60,000 would be considered a distribution, and you would not pay self-employment tax on it. That alone can lead to thousands in annual tax savings.

Who Qualifies for S Corp Election?

Before filing IRS Form 2553, your business must meet the eligibility requirements set by the Internal Revenue Service.

Requirements to Elect S Corp Status:

• Your business must be registered as an LLC or a Corporation
• You must be a U.S. citizen or resident
• You can’t have more than 100 shareholders
• You can only have one class of stock
• All shareholders must be individuals (not other companies)

If you are a solo creator who has registered an LLC and files taxes in the United States, you likely qualify.

How to File the S Corp Election Form (Form 2553)

To change your tax status to an S Corporation, you need to file Form 2553 with the IRS. Timing is key, and you must submit it by the IRS deadline.

Filing Steps:

Step	What to Do
1	Make sure your business is already an LLC or Corporation
2	Download IRS Form 2553 from the official IRS website
3	Fill in your business information, tax year, and officer details
4	Submit the completed form by fax or mail to the correct IRS office
5	Wait for written confirmation from the IRS that your S Corp election is accepted

Important Deadlines:

• File within 75 days of starting your business
• Or, file within the first 75 days of the new tax year

If you miss the deadline, your S Corp status won’t apply until the following tax year. That’s why timing matters.

Mistakes to Avoid When Filing

Filing Form 2553 is simple on the surface, but a lot of creators make small mistakes that can lead to IRS rejection or future tax problems.

Common Mistakes:

• Filing after the deadline
• Using the wrong fiscal year
• Leaving required sections blank
• Forgetting officer signatures
• Filing before the LLC or Corporation is officially registered

These mistakes can delay your status or cause issues with your tax filings. If you’re unsure, working with a professional who understands OnlyFans income and tax compliance is worth the cost.

Your Tax Responsibilities After Electing S Corp Status

Once the IRS approves your election, your tax life changes. You now run your business as both the owner and employee.

What This Means:

• You must pay yourself a regular salary through payroll
• You must file a business tax return (Form 1120S)
• You’ll issue a Schedule K-1 to yourself each year
• You must track business income and expenses accurately
• You’ll still need to file personal taxes, including your business earnings

You are also responsible for state tax filings. Some states don’t recognize S Corps and may still tax you like a regular business. Full tax compliance means you need to stay on top of both federal and state rules.

What Can You Write Off?

S Corps still allow you to deduct regular business expenses. If it helps you make money, market your content, or manage your business, it likely qualifies as a business expense.

Common OnlyFans Tax Write-Offs:

• Cameras, lighting, props, and wardrobe
• Editing software or online tools
• Monthly subscriptions for apps or content planning
• Phone and internet bills
• Home office costs
• Professional services like legal or accounting help

Always keep receipts, and don’t mix personal and business accounts. The IRS expects organized, clear records.

When S Corp Status Might Not Make Sense

While S Corps offer big savings, they are not the right move for every creator.

You might want to wait if:

• You earn under $60,000 per year
• You don’t want to deal with monthly payroll
• You aren’t ready to pay for bookkeeping and accounting
• You plan to stay part-time or use OnlyFans as a side hustle

There are costs to running an S Corp. You’ll need to pay for payroll software, file more tax forms, and possibly hire a tax pro. But for most creators bringing in serious revenue, the tax savings make up for those expenses.

FAQs

What is IRS Form 2553?

IRS Form 2553 is the official form used to elect S Corporation tax status for an LLC or Corporation. By filing it, your business can be taxed as an S Corp, which may help reduce self-employment taxes. It must be submitted to the IRS within a specific time frame to take effect.

Can I file the S Corp election form myself?

Yes, you can file Form 2553 on your own since it’s free and available directly on the IRS website. Many small business owners and creators choose to handle it without professional help. However, it’s important to carefully review the instructions and file on time to avoid mistakes.

How much does it cost to set up an S Corp?

Filing Form 2553 itself is free with the IRS, so there’s no direct charge for the election. However, you should plan for additional costs like payroll software, bookkeeping services, or tax preparation. Some states may also require extra filing fees or franchise taxes depending on local laws.

What happens if I make a mistake on the form?

If you make an error, the IRS may reject your application or delay your S Corp status until the following tax year. This could affect your ability to claim the tax benefits you were expecting. In such cases, you may need to seek late election relief with the help of a tax professional.

Conclusion

If you’re serious about growing your OnlyFans business and keeping more of what you earn, the S Corporation election form is a smart place to start. It’s not just for big companies. It’s designed for content creators making real money who are ready to treat their business like a small business corporation. By choosing S corporation status, you can reduce how much you pay in income tax and corporate taxes, while still reporting earnings on your personal tax return. You’ll need to meet the eligibility rules for corporation election, file the paperwork correctly, and stay compliant with IRS requirements. But the benefits are clear, lower taxes, more control, and a setup built for long-term success.

At The OnlyFans Accountant, we help creators make smart business and tax decisions for their OnlyFans income. We guide you through S Corp elections, payroll setup, and maximizing tax savings to keep more of what you earn. Contact us today to schedule a consultation and start optimizing your tax strategy.