Skip to main content
February 10, 2025
Question

Negative Retained Earnings

  • February 10, 2025
  • 0 replies
  • 0 views

Four members of an LLC filing as an S-Corp are withdrawing equity each year. The equity distributions are more than the profit made. There is plenty of equity in the company. The equity decreases, but do these equity distributions effect  retained earnings? Can retained earnings be negative, year after year?