The main difference between a C corporation and an S corporation is how the corporation is taxed.
What is the Purpose of the Form 2553 Election by a Small Business Corporation?
The purpose of Form 2553 is to convert your corporation from a C corporation to an S corporation. The S corporation status essentially changes the way a corporation is taxed. In S corporations the shareholders are taxed instead of the corporation itself. Whereas in a C corporation the shareholders and the corporation are taxed.