A corporation or other entity eligible to elect to be treated as a corporation must use Form 2553 to make an election under section 1362(a) to be an S corporation, commonly called a “Subchapter S” corporation.
An entity eligible to elect to be treated as a corporation that meets certain tests will be treated as a corporation as of the effective date of the S corporation election and does not need to file Form 8832, Entity Classification Election.
The income of an S corporation generally is taxed to the shareholders of the corporation rather than to the corporation itself. However, an S corporation may still owe tax on certain income. (For additional details, see Tax and Payments in the Instructions for Form 1120S.)