This is a check the box selection with the IRS and with the state department of revenue and does not take much at all. You go to the IRS website and they have forms for converting the C-Corp to an S-Corp and all shareholders
have to agree and you contact the state department of revenue for their form as well. It is legal and happens all of the time, but there are some tax burdens that may occur with unrealized profits of the C-Corp and you need to sit with your tax professional to examine those as well.
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