When you elect to have an LLC treated like as S-Corp, understand that is "FOR TAX PURPOSES ONLY!" and absolutely nothing else.
First thing you must do is "CLOSE" the multi-member LLC by filing a final 1065 partnership return and issuing all owners a final K-1. You will need to show the disposition of "ALL" assets, inventory, and any "cash on hand" held by the partnership.
Next, you will start and complete what will be your "FIRST" 1120-S corporate return. If you don't know what you're doing (and very few do) then you should seek professional help for this transition. Do this wrong, and I can guarantee you that the fines, penalties and back taxes that will be assessed, will bankrupt the S-Corp fairly quickly. It makes the cost of professional help seem like a pittance in comparison. Please seek professional help yesterday, if not sooner.
