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User7851231
January 25, 2022
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Is there any real difference between an owners dividend or an owners distribution in an S-Corp?

  • January 25, 2022
  • 1 reply
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Does it matter, how we categorize this transaction for IRS or QB purposes? 

    Best answer by Rainflurry

    S corps do not pay dividends, they make distributions.  Dividends are paid out after-tax and, since S corps are not taxed at the corporate level, they do not pay dividends.  

    1 reply

    Rainflurry
    RainflurryAnswer
    January 25, 2022

    S corps do not pay dividends, they make distributions.  Dividends are paid out after-tax and, since S corps are not taxed at the corporate level, they do not pay dividends.  

      J
      jennfr00
      September 29, 2022

      were in chart of accounts do we categorize owners' distribution in an S-corp.?

      Rainflurry
      Rainflurry
      September 30, 2022

      @jennfr00 

       

      Create an equity account called "<Shareholder Name> Distributions - 2022".  IMO, it's nice to have a separate account for each shareholder for each tax year.

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