You need to make an appointment with a tax professional who can explain the income tax consequences of making this change.
While this may be fairly simple from a state legal perspective, you need to understand the federal income tax consequences, as generally this will require a liquidation of the S corporation; which is where the tax consequences come into play.
Get some professional advice before you make any decision; business goals, fringe benefits, wage impact, etc.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
