Retained Earnings

[Killebrew3]

LLC filing as an SCorp.  Very simple business (no inventory, owner employee, selling online non-tangible products, no assets/liabilities)

All profits distributed except for $10K end of year bank balance (beginning bank balance was $0)

Is the $10 K my Retained Earnings

[Anonymous_]

Is this your first year in business?

@Rick19744 

[Rick19744]

If this is your initial year in business, then this makes sense.

If you are not using some type of software for your record keeping, I would recommend you do so.  QuickBooks would be a good choice.  Using a software such as this, you would be able to print out a balance sheet and then compare it to your Schedule L on the tax return.

However, you indicate that all profits were distributed.

Are you taking a salary?  If not, you definitely should be looking into this, as this is a hot topic and a priority review program for the IRS.

This forum is not conducive to determining what is a "reasonable" salary, this is only a recommendation that you should probably considered taking a salary.