I am trying to report that I have distributed business income to shareholders, but I need to know which line on the balance sheet (Schedule L) to report this on.
Shareholder distributions reduce equity, which is a the bottom of the Balance Sheet.
In TurboTax, report distributions to shareholders under Business Info >> Member/Partner Information. Edit each member to report contributions, distributions, other adjustments, and ending capital. Your entries in this section flow to the Balance Sheet and to the individual Schedules K-1.
Note that you may not be required to include a balance sheet. Read more here: