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This is not compliant: "Have S Corp no w2 employees"
Because the IRS requires "reasonable compensation" for services performed. And if none are performed, there is no business. Otherwise, that would be you = employee-shareholder.
"applying to the ppp program hoping i could turn my K1 into a Schedules C"
Uh, no. That's not what this means.
You are already in a bit of trouble with this situation as described here. You intend to make it worse? Applying for yourself under a Schedule C means you are running a different business than the S Corp is running.
"i was trying apply for the PPP program that call a schedule c or a 941
which we used day labor"
Are you a professional tax preparer working on your clients' tax return? This is a forum for using ProSeries software.
It seems you need some professional guidance for how to run your business. At a minimum, you cannot be your own day laborer, and "day laborer" doesn't overide Employment categorization.
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