So my thought is, you shouldnt close owners investment and owners draw with retained earnings, unless you are taking out your profits, then it can go into owners draw. Your net income will carry to retained earnings, and if you should use the S corp elections, you would use the retained earnings to draw from SE tax free. so you want it to accumulate.  If I am wrong, please someone clarify for me. I got on to see if owners investment and owners draw gets zeroed out and I saw this post. Thanks!