Returning Member

Business & farm

Thanks for your questions.


My point of saying "Close S-Corp" is because of this situation.  A lot of retained earnings that I struggle to feel comfortable taking out.


I sold an asset out of this business a few years ago and basically nothing left except cash/investment assets.  The last couple of years I haven't done much with it so was thinking of closing and just starting a new S-Corp when I am ready for another venture.  Doing investments in S-Corp is challenging at times and since my wife and I control 100% of it then it would be easier to just have money in our personal accounts.


When you say K1 is not generating income to justify a big distribution - that is my challenge - how do I ever get that money out if the K1 NEVER generates income again?  Sounds like I would have to close S-Corp?