You can take a distribution is your equity section is positive since S-Corp earnings will run through your personal return.  Set up an equity account and call it Shareholder's distributions. Code the check to this account.

Hello there, Venture115. 

Allow me to share some details about taking a distribution as the owner of an S-corp.
  

You can take a distribution and post from the Equity account since this will go through your personal return. This is nothing to do with your payroll. 
 

Also, I'd suggest reaching out to your accountant to verify the process and make sure that the equity account is being set up correct.
 

I've added these articles to help you with the process:

• Enter and write checks in QuickBooks Online.
• Add an account to your chart of accounts in QuickBooks Online.
• Set up and record S-Corp health insurance 

Please don't hesitate to let me know if there's anything else I can help you with. I'm always happy to assist you further. Take care.

I have done this, can I take the distribution though quickbooks payroll? If so, how do I do that?

Thank you for joining this thread, Kcroyaljosh.

I recognize your concern regarding taking an S-corp distribution through QuickBooks payroll. Allow me to provide you with guidance on how to address this matter.

We'll have to set up an addition item to track the distribution. To ensure the accuracy of your payroll records, I recommend consulting with an accountant for further assistance. They can recommend which specific paytype to use. When you have the information handy, follow these easy steps to set up the payroll item:

1. In your company, head to the Payroll menu on the left panel and choose Employees. 
2. This action will direct you to the Payroll page.
3. From the list of your workers' names, click on the one you're working on to view more details.
4. In the Profile tab, go to the Deductions & contributions section and press the Edit link. 
5. On the What deductions, contributions, or garnishments does __ have? press the Add deduction/contribution link.
6. Choose the appropriate payroll item from the  Deduction/contribution drop-down. 
7. Fill in the fields with the correct information.
8. Tap the Save button once done. 

Here are a few resources that provide insights on how to effectively track fringe benefits on your employees' paychecks and maintain records of S corporation medical insurance:
 

• Set up an S-corp medical payroll item for your corporate officers
• Add fringe benefits to paychecks

In addition, these links will guide you how to handle various retirement plans and prepare for the upcoming year-end tasks:
 

• Set up or change a retirement plan
• Set up state retirement plans in QuickBooks Payroll
• Year-end checklist for QuickBooks Online Payroll

Reach out to me again if you have additional questions or concerns about tracking S Corp in QBO. I'm always ready to respond to them. Enjoy the rest of the day, Kcroyaljosh.