You cannot just make distributions to yourself. Distributions from an S-Corp (or LLC taxed as an S-Corp) must be made in proportion to their ownership. If your spouse does not materially participate in the business, you don't have to pay him/her a salary; however, it leaves you open to scrutiny by the IRS to determine if those distributions should be characterized as salary, either in whole or in part.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
