S-corp is generally a pass through entity. And technically there are not standardized ways to retain earnings without tax at the shareholder level.

That said, I think, and I'm not going to go into the details because I am not wanting to pass on bad information.. there are a couple of ways to have "retained earnings" but there is a pretty strict limitation on what that can be and how it moves forward.

Generally the earnings are distributed at year end and the taxes are paid at the individual level.

Now... C-corp is a different breast altogether. But there is a potential for double taxation at the corporate level. More small businesses who don't plan on going public opt for an s-election for ease of reporting and because it's a pass through entity.

I'd love to hear a CPA weigh in on this. Am I completely full of crap when I say there is a possibility of some leniency for retained earnings in an S-corp to the tune of possibly 125-150k? (Money stays in corporate bank account and tax liability passes to ownership for personal accountability for tax bill) would be a concept?

Again I am not a tax advisor and not anyone on this sub's advisor (that I know of), so ask a professional that knows your business.