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Originally Posted by OldJack The shareholder pays the tax (as though they were wealthy) but has to leave the money in the corporation to hire employees and grow the business. |
I saw this line and had a quick question. Does the money
have to be left in the corporation? I mean, yeah, to some extent, some money needs to be there, but the surplus can be distributed, right?
Are there strict regulations on how much can be distributed?
Another question came to mind, where does the money end up from an accounting standpoint? Since S Corporations do not have Retained Earnings, what is the accounting for the money left in?