Based on what you have provided and on what the others have said, it doesn't look like there's much of an advantage to change. Don't forget that S corporations that do not pay what is deemed as reasonable compensation are prone to IRS audit, which could lead to a full audit. Audits are expensive and nerve-racking to the client, even if it is eventually  a no change audit. If the client wants limited liability, can you become a sole member LLC/disregarded entity?