Can a taxpayer change their Corporation from an S corporation to a C corporation?
In general, a taxpayer can convert an S corporation to a C corporation by voluntarily revoking the S election at any time.
Shareholders of an S Corporation may wish to convert to a C corporation because of changes in the tax laws or to provide the corporation with more flexibility as the business requirements changes.
The process of Converting to a C corporation clearly offers more potential for increasing the investor base and raising equity capital (if the corporation decides to go public). Furthermore, this also allows the Corporation "to offer a wider range of tax-deductible fringe benefits."
There are no specific form's that must be filed with the IRS to revoke the S election.
"It is sufficient for the corporation to file a statement titled Revocation of S Corporation Status with the IRS and signed by the person authorized to do so.
Furthermore, there should be a statement of consent signed by shareholders that, as a group, own more than 50 percent of the issued and outstanding stock of the corporation. However, to be effective on the 1st day of the corporation's taxable year (e.g., January 1), you must revoke the S election by the 15th day of the 3rd month of that tax year (e.g., March 15)."