S Corp Owner Equity Accounts Question

[333OnlyHalfEvil]

Hello everyone:

Question: Should an S-corp have equity accounts for each individual owner or no?

Reason I'm asking is because I seem to be getting different answers. What do you think?

This source says no: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/drawing-from-retained-earnings-of-an-s-corp/00/148493

This source says yes: https://loopholelewy.com/loopholelewy/01-tax-basics-for-startups/s-corporations-03-capital-accounts.htm

Hence the question. Which is correct? Does it matter? What are you doing?

Thanks in advance for your time and reply :)

[Bobjob]

I am not an accountant, so I do not know what I am talking about.

I have a Type C and Type S corp neither currently use equity accounts. To me they are a good idea, but again we do not use them. Best I can tell, if you are paying estimated taxes, then it doesn't matter.