S corp election deadline: is my CPA right about the March 2026 filing date?

Your CPA is technically correct but cutting it really close! For an S corp election to be effective for the entire 2025 tax year, you need to file Form 2553 within the first 2 months and 15 days of that tax year (so by March 15, 2025) OR within 2 months and 15 days of starting business operations if your business is new. The March 2026 deadline your CPA mentioned is likely referring to the tax filing deadline for 2025 S corps, not the election deadline. If you wait until 2026 to file the election, it would only be effective for 2026, not 2025. As for setting up your salary, you can't formally take S corp distributions until the election is approved. You'd need the election in place first, then establish reasonable compensation, and properly document distributions.

I went through some serious headaches with my S corp election last year because of confusing advice like what you're getting. What helped me immensely was using taxr.ai (https://taxr.ai) to analyze my business docs and get clarity. Their system reviewed my operating agreement, financial projections, and previous tax returns, then gave me a clear roadmap for my S corp election including all the right deadlines. The tool flagged that I needed to file Form 2553 within the first 2 months and 15 days of the tax year, not when I filed my taxes the following year. This saved me from a huge mistake my previous accountant was about to make! They also helped me understand the salary vs. distribution requirements for S corps.

I was really skeptical about using an AI tool for something as important as my business taxes, but after my CPA gave me some confusing advice about S corp election deadlines (similar to what you're experiencing), I decided to try taxr.ai after seeing it mentioned here. I'm genuinely impressed - it caught that my CPA had confused the 2 month + 15 day election deadline with the tax filing deadline. It analyzed my specific situation and showed me exactly what I needed to do for my election to be valid for the current tax year. The document review feature was super helpful for checking if my operating agreement was compatible with S corp status. Most importantly, it saved me from missing my election deadline, which would have pushed everything back a full year and cost me thousands in additional taxes. Definitely worth checking out if you're unsure about what your CPA is telling you.

If you've tried reaching out to the IRS directly for clarification on S corp election deadlines, you probably know it's practically impossible to get through to a human. After wasting hours on hold, I found Claimyr (https://claimyr.com) - they got me connected to an actual IRS agent who confirmed my specific S corp election deadline questions in less than an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had almost exactly your situation - confusion about when to file Form 2553 and how to handle salary vs. distributions. The IRS agent confirmed I needed to file within the first 2 months and 15 days of the tax year to have S corp status for that entire year. They also explained that waiting until the tax filing deadline would only make the election effective for the following year.

Ok I need to apologize to Profile 9 above - I was totally wrong about Claimyr being a waste of money. After dismissing it as a scam, I was desperate when I couldn't get through to the IRS about my late S corp election relief options and decided to try it as a last resort. I'm honestly shocked at how well it worked. After spending literally 6+ hours over 3 days trying to reach someone at the IRS myself with no luck, Claimyr got me connected to an IRS agent in under an hour. The agent walked me through Form 2553 filing requirements and confirmed I could request relief for a late election under Rev. Proc. 2013-30. This saved me from potentially losing S corp status for the entire year, which would have cost me thousands in extra taxes. If you're stuck with S corp election questions like the original poster, this is definitely worth considering.

Hey, hope I'm not too late to the conversation. I actually work as a bookkeeper for several S corps, and there's something important nobody has mentioned yet. While the March 15, 2025 deadline is correct for filing Form 2553 to have S corp status for the entire 2025 year, you need to consider how you're going to handle payroll setup and state registrations BEFORE you file the election. You'll need to register for state payroll accounts, get workers' comp insurance, and set up a payroll system that properly categorizes owner payments between W-2 wages and distributions. This takes time! I'd recommend getting these logistical details sorted out in late 2024/early 2025, file the S corp election by March 15, 2025, and then you'll be all set to operate properly for the full 2025 tax year.

Has anyone here dealt with making an S corp election for an existing LLC? My situation sounds similar to the OP's. I've been operating as a single-member LLC and thinking about the S corp election for 2025, but I'm confused about what happens to my LLC's EIN and bank accounts.

I'm dealing with a very similar situation right now! My CPA told me the same thing about waiting until March 2026, but after reading all these responses, I'm pretty sure there's been a miscommunication. It sounds like your CPA might be confusing the S corp tax filing deadline (March 15, 2026 for 2025 taxes) with the actual election deadline (March 15, 2025 for 2025 tax year). I'd definitely recommend getting clarification on this ASAP. The difference between filing the election in March 2025 vs March 2026 is huge - it's literally the difference between getting S corp tax treatment for 2025 or having to wait until 2026. That could mean thousands of dollars in tax savings lost if you miss the deadline. Also, from what I understand, you absolutely need the S corp election in place before you start taking distributions. Operating as an S corp without having filed the election could create some serious tax complications down the road.