I just pulled the right cover off to try and figure out why my bike is not starting. I noticed that the bendix is stuck engaged, isn't it supposed to retract? When I hit the starter button it spins the gears.

Here is a picture: Imgur: The most awesome images on the Internet

Not a bendix like a car has. It uses a one way clutch there is always engagement of the gears

ahhhh ok, thank you

Yep, the starter shaft stays engaged there. The actual one-way or overrunning clutch is behind one of the gears above the starter shaft.

The starter should be able to turn the engine, but the engine should never be able to turn the starter motor.