I agree with @ThomasR. This is a hot item for the IRS and an active shareholder who is not being paid wages is likely to win the audit lottery at some point.
If this was an initial year and no distributions were made, the IRS would most likely not push the issue. You would most likely just claim that since this is the initial year you needed to get an idea of cash flow before starting to take a wage.
Since you appear to be profitable, make sure you get on the payroll for 2019; especially since we are 6 months into the year. You could have some exposure for the past years but just get it corrected ASAP.
You should meet with a tax professional so you understand how S corps work; pass-through entity and all income is taxed at the shareholder level regardless of whether distributions were made.
@ChrisV is not technically correct on a number of items; first as noted above, an S corporation shareholder that is active should be taking a wage. Second, an S corp technically tracks their AAA not retained earnings.
When you prepare the S corp return, you will need to maintain what is know as the accumulated adjustments account (AAA). This needs to be maintained along with your basis in the S corp.
As long as you have positive AAA and basis, any distributions will not be taxable since the shareholder has already paid tax on these earnings.
You will also need to understand fringe benefits as the tax implications are not the same as a regular C corporation.
Attached is a link to provide some guidance on maintaining your basis in the S corporation:
https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-stock-and-debt-basis
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
