My question is 2 fold. First of all, if we have an S Corp with a father son and 76/24 ownership, and wish to make it 50/50 is this a taxable item? Can we simply even out distributions and pay, and file as 50/50 ownership?

We are a small company, 5 employees with $1.5M sales and only the 2 owners. Is S Corp the right entity type?

Any help or suggestions are greatly appreciated.