Revoke S Corporation Election
To revoke the S Corp election, business owners must submit a statement to the IRS service center. The statement should note the corporation revoked the election under Section 1362(a). Steps to revoke S Corp status include a letter stating the corporation revokes under 1362(a).
Withdraw from S Corporation
To withdraw S corp status, a firm must: hold a vote for all shareholders, send a revocation letter to the IRS, along with a declaration of approval from all shareholders, and complete Form 8832.
Taking Earnings Out of an S Corporation
The two ways to take earnings out of an S corporation are either as earned wages required when corporate officers perform services for the company or as shareholder distributions.
If you need help with any of these steps, I’ve outlined exactly how to do payroll for a single member S Corp in a separate blog post. The wages you pay yourself will be the biggest way that you are financially rewarded for your hard work, so take the time to closely consider this amount.