You file an S-corp return. The remaining ordinary profits are taxed at ordinary income tax rates. Distributions do not affect this. They simply reduce your tax basis in the S-corp. Yes, any money left after expenses can be taken out by the owners and used for anything they want. Warming don't spend it all because you may need some of that money to pay the income taxes on the remaining profit.
for incorrect w-2 you file w-2 c
