Does choosing S Corp taxation change my ownership privacy?

S Corp election itself doesn't create a public ownership record. The 2553 goes to the IRS, not the state. But your state may require an annual report listing officers or shareholders, depending on where you're formEd. That's the leak you need to check.

Your accountant probably means well but they're thinking tax-first, privacy-last. Classic.

Short answer: no public shareholder list from the IRS. Long answer: if you use a nominee and they're the one signing the 2553, you're fine. If you sign it personally, the IRS knows. Whether that ever becomes public is a different question. It generally doesn't, but subpoenas and leaks exist. Also, some states require the the S Corp to list shareholders in the annual report. Wyoming and New Mexico are pretty good about not doing that. California will absolutely publish your name if you're an officer.

Wait, California pu blishes officer names? Glad I left.

S Corp is a tax classification, not a separate entity. Your LLC is still the entity on file with the state. So the privacy question is really about what your state requi res for LLC annual reports and who's listed as manager/member. The S election just adds an IRS layer that isn't public. Unless you're in a state that asks for shareholder info on the annual report, you're probably okay. But talk to a privacy-focused attorney, not just a CPA. CPAs often don't think about this stuff.

also worth noting: if you have a nominee manager, that person's name is what shows up on the state filing. The S Corp doesn't change that. But if the nominee is also the shareholder of record for the S Corp, then you're layering properly. If you're the shareholder on the 2553, the IRS knows, and the state might too if they cross-reference. They usually don't, but don't assume

"The IRS knows" is the new "the NSA knows." Everything's fine until it isn't.

Okay so the consensus seems to be: S Corp itself isn't a public record, but state annual report requirements are the real real variable. And I should make sure the nominee is the one on the 2553, not me. That's helpful. I'll double-check my state's filing requirements before pulling the trigger.

One more thing—if you're using a nominee, make sure they're actually the one signing the 2553 and that the IRS has their info, not yours. Otherwise you've pad for privacy theater. Also, some registered agent services will file the 2553 for you with their address as the contact, which is fine, but the shareholder name still has to be someone's. Don't let it be yours if privacy is the goal ngl.

And don't forget the BOI reporting under the Corporate Transparency Act. That's a whole Other can of worms. S Corp doesn't exempt you. FinCEN gets your info regardless. That's not public, but it's another database.