You bought an S-Corp. stock. It files Form 1120-S. Its income net of some expenses and other items is reported on the K-1 that the S-Corp will issue to you. You are considered an employee and thus are required to take a salary and file payroll tax returns. Since you seem to know little about S-Corp operations and related tax obligations, find a good tax pro and sit down with them to determine your reporting obligations. If you mess up, the penalties and taxes could be substantial.
I will provide some insight, but you still need to get a grasp on your filing and reporting obligations. This is beyond the scope of this forum. Outside basis = you bought stock, thus your tax basis is what you paid for the stock. It goes up or down depending on what's reported on that K-1 I mentioned. Inside basis = what's on the books of the S-Corp you bough which can be more or less than what you paid. Generally, this is the tax basis of its assets less liabilities. You do not have a new corporation because you bought stock. Rather, the old S-corp continues so you'll need prior filings.
