What is the name of your state (only U.S. law)? NC
HI there, I own an S-corporation and have some questions about retained earnings and profits:
HI there, I own an S-corporation and have some questions about retained earnings and profits:
- Are retained earnings leftover at the end of the year in my busines checking account taxable? My payroll company said something about having to "spend" all the retained earnings by the end of the year or they will be taxed.
- If I am not using all of the retained earnings/profits (not paying myself more bonus or giving employees more bonus), there will be money left over in the checking account.. is this taxable?
- What is the best way for an S-corp to take its retained earnings and profit and INVEST it? (I'm assuming what I heard was right, that if it is left over in my checking account it is taxable, so where can I put the money to work to earn interest?)