09/03/2026
September 15 is a deadline. For most people seeing it in their feed, it is not their deadline.
If you already have an S-corp and you filed an extension, your 1120-S is due September 15.
If you are a sole proprietor on a Schedule C, September 15 does not apply to you. You cannot elect S-corp status for 2026 right now. What you can do is decide whether 2027 should look different.
Three things decide it:
Profit, not revenue. $300,000 in revenue with $290,000 in expenses changes nothing.
A reasonable salary. Paying yourself $12,000 and distributing $150,000 is how you get attention you do not want.
Savings that beat the cost. Payroll, a separate return, a franchise tax report, and clean books are real expenses. Save $1,500 and spend $2,500 and you went backwards.
One more thing most posts skip. Wages run through payroll reduce your qualified business income deduction, so the true savings are smaller than advertised.
S-corps are not a loophole. They are a tool, and sometimes the wrong one.
Send us your last full year of profit and how you are filing now, and we will tell you what an S-corp would actually save you or cost you.
Accounting Made Easy | Katy, TX