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Sounds like it has some sort of alarm system - as the factory installed one doesn't have a red button near the steering wheel and uses a key fob, this sounds like an aftermarket installation.
You'll have to find some way to reset or bypass the alarm - that will require knowledge of what system you have. Even if you just disconnect the horn, temporarily, it is likely this system also has a starter kill (car may or may not startup, if it does may not run for long).
Try and look for a control box somewhere in and around the cabin (under the seats, under the dash, inside the engine bay, etc.) Once you find out what system is in there, then you can find out how to turn it off.
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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