However, I'd still recommend reaching out to your accountant so you'll be guided further on the best way to record it without messing up your account. Learn about our DIY business formation services here. What is the best way to do this? Connect with and learn from others in the QuickBooks Community. On the other hand, Owner Draw is an equity-type account used when you take funds and put money in the business. I would like as few as possible, -I made opening balance equity account inactive as I never used it, -I added shareholder contribution account and moved everything from the previous owners equity account to it as it was mostly money i put into the business, -I renamed Owners Equity to Shareholders capital and made distributions and contributions sub accounts, So I now have 5 equity accounts which looks like this. 3) Shareholder capital is the account that everything will roll into. For example let's say a two shareholder s-corp was started in 2016 w/ the following: Shareholder 1 contributions $10,000 For the detailed steps, you can check out this article:Set up and pay an owner's draw. The IRS judges "reasonableness" case by case, based on the work you do, the amount of your salary, your skill at your job and your professional history. If you're a sole proprietor, you must be paid with an owner's draw instead of a paycheck through payroll. The best method for you depends on the structure of your business and how involved you are in running the company. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/8982"}}],"_links":{"self":"https://dummies-api.dummies.com/v2/books/"}},"collections":[],"articleAds":{"footerAd":"

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