@evanevans wrote:
.....I'm referring to would become "retained earnings" not distributed in a tax year.
@Critter-3 already mentioned this, or at least it should be implied, but net profit from your corporation is passed through to the S corporation shareholders whether it is distributed or not.
The corporation can certainly invest net profits retained (RE) as it sees fit but those net profits will still flow through to the shareholders, regardless.
