What it is
A firm that helps form an entity must say where tax advice stops and legal work begins, and which deadlines the client must meet. This letter does both.
It lists the services and who provides them, the legal advice limit, the election deadlines from the IRS instructions, the ownership reporting position and the fees.
When to use it
- When a client asks the firm to set up a new business.
- When advising on an S corporation election.
- When a client wants a first-year tax calendar.
What’s inside
- Service table including what the attorney provides
- Legal advice limit
- Election deadlines for Forms 2553 and 8832
- Fees, expenses and signature block
Standard cited
This template follows Forms SS-4, 2553, 8832. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is the Form 2553 deadline?
The IRS instructions say no more than 2 months and 15 days after the beginning of the tax year the election is to take effect.
What are the Form 8832 limits?
The IRS instructions say the election cannot take effect more than 75 days before it is filed or more than 12 months after.
Does beneficial ownership reporting apply?
FinCEN’s rulemaking, begun with a March 2025 interim final rule, exempts companies formed in the United States and U.S. persons from beneficial ownership information reporting. The letter says the firm will confirm the current rule at formation.
Related templates
- LLC Formation and Tax Setup Checklist
- Corporation Formation and S Election Checklist
- Tax Advisory and Planning Engagement Letter
- New Business Tax and Registration Setup Checklist
Last updated 11/06/2026. All free templates.