Can I Revoke S-Corp Election for My LLCs in 2026 and Go Back to Schedule C?

Someone on Reddit has four single-member LLCs in New Jersey that elected S-Corp tax treatment. Each owes $375 for the 2025 CBT-100S filing; they want to revoke the S-Corp election for 2026 to reduce tax complexity and fees. They had heard that revoking S-Corp means they can only elect to be taxed as a C-Corp, not go back to default LLC taxation (Schedule C). They wanted to know: options after revocation (C-Corp only or back to Schedule C?), deadline to revoke for 2026, wait period before re-electing S-Corp, and any New Jersey-specific rules or penalties. You are not stuck with C-Corp. For single-member LLCs, when you revoke the S-Corp election, the LLCs revert to their default federal classification: disregarded entities. You report each LLC's income on Schedule C on your personal return; no 1120-S, no C-Corp, no double taxation. Deadline to revoke for 2026 is generally March 15, 2026 (15th day of the third month of the tax year). There is generally a five-year wait before you can re-elect S-Corp unless the IRS consents.

Bottom line: You are not stuck with C-Corp. For single-member LLCs, revoking the S-Corp election reverts them to disregarded entities; you report each LLC on Schedule C on your personal return. To have revocation effective for 2026, revoke by March 15, 2026 (15th day of the third month of the tax year) for calendar-year entities; you generally must wait five years before re-electing S-Corp unless the IRS consents. New Jersey does not impose a specific penalty for revoking; still file and pay 2025 CBT-100S and follow NJ rules for LLCs after revocation.

Question from Reddit

Can I revoke S Corp election for LLC (that I elected to be taxed as a S-Corp) in 2026?

Hi r/tax,

I have 4 LLCs in New Jersey that elected S Corp tax treatment. Each one owes $375 for the 2025 CBT-100S filing (total $1,500), and money is tight.

My situation: It's currently June 28, 2025. I want to keep the LLCs active for 2026 business. I need to pay $375 per LLC for 2025 CBT-100S filing but considering future options. I am thinking about revoking S Corp election for 2026 to reduce tax complexity and fees in the future.

My confusion: I heard that if I revoke the S Corp election, I can only elect to be taxed as a C Corp, not go back to the original LLC default taxation (Schedule C for single-member LLCs). Is this true?

I'm confused because:

These are LLCs, not actual S Corps

I want to go back to simple Schedule C reporting if possible

I don't want C Corp taxation (double taxation issues)

Questions:

If I revoke the S Corp election for my LLCs, what are my options - C Corp only, or can I go back to default LLC taxation?

What's the deadline to revoke the S Corp election for 2026?

If I revoke, how long do I have to wait before I can re-elect S Corp status?

Are there any New Jersey-specific rules or penalties for revoking?

I'm trying to understand if revoking gets me back to simple Schedule C reporting or if I'd be stuck with C Corp taxation, which would be worse than staying with S Corp.

Any clarification would be greatly appreciated!

Edit: These are single-member LLCs if that matters for the available tax elections.

Source: Reddit

Analysis

The user wants to revoke the S-Corp election for their single-member LLCs in New Jersey and is worried that revocation would force C-Corp treatment instead of default LLC (Schedule C). They also need: options after revocation, deadline to revoke for 2026, wait period before re-electing S-Corp, and NJ-specific rules or penalties.

Answer

You are not stuck with C-Corp. For single-member LLCs, when you revoke the S-Corp election, the LLCs revert to their default federal tax classification: disregarded entities. You report each LLC's income and expenses on Schedule C (or the appropriate schedule) on your personal return; no 1120-S, no C-Corp, no double taxation. The idea that "revoking S-Corp = only C-Corp" applies to actual corporations that revoke S-Corp; they then become C-Corps. Your entities are LLCs that elected S-Corp tax treatment. When you revoke that election, the LLC is still an LLC and, under the check-the-box rules, a single-member LLC with no other election is a disregarded entity, so Schedule C is correct.

Options after revocation

Default: Single-member LLC with no S-Corp (or C-Corp) election = disregarded entity → Schedule C on your 1040.
You are not required to elect C-Corp. Revoking S-Corp simply ends the S-Corp election; the LLC goes back to its default (disregarded for single-member).

Deadline to revoke for 2026

To have the revocation effective for the 2026 tax year, you generally must revoke by the 15th day of the third month of that tax year. For a calendar-year entity, that is March 15, 2026. If your LLCs use a fiscal year, the deadline is the 15th day of the third month of that fiscal year. File the revocation in writing (signed by shareholders as required) and send it to the IRS (address in Form 2553 instructions or where you file 1120-S).

Waiting period to re-elect S-Corp

After a revocation, the IRS generally requires a five-year wait before the entity can re-elect S-Corp treatment, unless you qualify for an exception (e.g., consent of the IRS). So if you revoke for 2026, you typically cannot re-elect S-Corp until 2031 (or as allowed by exception). Plan accordingly if you might want S-Corp again later.

New Jersey

New Jersey does not impose a specific penalty just for revoking a federal S-Corp election. You must still comply with state filing requirements: file and pay 2025 CBT-100S (or other required returns) for the year(s) the LLCs were S-Corps, and after revocation, follow NJ's rules for LLCs that are no longer S-Corps (e.g., whether a different return or no separate entity return is required). Check the New Jersey Division of Taxation or a NJ tax professional for your situation.

Margen can help you model Schedule C income and self-employment tax for each LLC after the switch so you're ready for 2026.

Applicable Sections

Federal / IRS

Revocation of S-Corp election: IRC § 1362(d)(1); Treas. Reg. § 1.1362-6. Revocation is effective when filed by the deadline (generally the 15th day of the third month of the tax year for that year). (IRS S Corporations)
Check-the-box: Treas. Reg. § 301.7701-3. A single-member LLC with no election is a disregarded entity; revoking S-Corp does not make it a C-Corp.
Re-election after revocation: IRC § 1362(g). Generally five years before the entity can re-elect S-Corp unless the IRS consents to an earlier election.

State / New Jersey

CBT-100S: New Jersey S-Corp return; required for entities taxed as S-Corps for the period they had that status. After revocation, follow NJ rules for LLC reporting. (NJ Division of Taxation)

Practical Notes

Revoking S-Corp for your single-member LLCs gets you back to Schedule C (disregarded entity), not C-Corp. You are not stuck with double taxation.
Deadline for 2026: Generally March 15, 2026 for calendar-year entities.
Re-elect S-Corp: Generally five years after revocation unless an exception applies.
NJ: No specific penalty for revoking; still file and pay 2025 CBT-100S (and any other required returns) and comply with NJ LLC filing going forward.
Margen can help you plan Schedule C and SE tax for each LLC after revocation.
Consult a tax professional (especially one familiar with NJ) to confirm deadlines, shareholder consent, and state filings for your four LLCs.

Limitations

This answer does not cover fiscal-year deadlines in detail, multi-member LLCs, or exact NJ forms and rules after revocation. For advice tailored to your entities and NJ, consult a tax advisor. Margen can help you model income and tax after the conversion.

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Can I Revoke S-Corp Election for My LLCs in 2026 and Go Back to Schedule C? (Reddit Q&A)