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Level 1

How to record resignation of an LLC owner in QuickBooks

Our LLC had 2 owners (90% and 10%). The person with 10% ownership resigned. Right now, we have 2 Equity accounts in the chart of accounts. I just want to know how to record this resignation in QuickBooks. Thank you so much in advance!

3 Comments 3
QuickBooks Team

How to record resignation of an LLC owner in QuickBooks

Hi there, @TheGodKind.


I'll help you record this transaction in QuickBooks Desktop. 


You can set up an owner's draw account in which QBDT to track withdrawals of the company's assets to pay an owner. Then, write a check from it to record the resignation. 


Here's how to create an owner's draw account:


  1. Go to Lists and select Chart of Accounts or press CTRL + A on your keyboard.
  2. At the bottom left choose Account, then click New.
  3. Select Equity and click Continue.
  4. Enter the account name (Owner's Draw is recommended) and description.
  5. Click Save & Close.


To write a check from an owner's draw account, follow these steps:


  1. Go to Banking and click Write Checks.
  2. in the Write Checks window, go to the Pay to the order of section, select the owner, and enter an amount next to the $ sign.
  3. In the detail area of the check, assign the amount of the check to the equity account you created to record the owner's draws.
  4. Click Save & Close to record the check.


For more details, check out this article: Set up and process an owner's draw account.


Also, our Help articles might have something that can help you with your QuickBooks concerns, too. Just make sure that the topic is set as "QuickBooks Desktop" to browse for related posts.


The Community always has your back, so please let me know if you have any other questions. I'll be more than happy to help. Keep safe.

Level 5

How to record resignation of an LLC owner in QuickBooks

You don't need to create an owner's draw equity account. Just write a check for each owner and use their assigned equity acc in the expense section. 

Level 1

How to record resignation of an LLC owner in QuickBooks


Thanks for the reply. There was no cash transaction involved. Me and my wife were partners (90% and 10%)

We had created an Partners Equity account - Then had  created sub accounts - Partner A contributions and Partner A distributions. Like wise Partner A contributions and Partner B distributions. This is how we used to track our distributions. My question since I am now a 100% owner of the business, do I have to do anything with her Equity account. Please find the attached screenshot


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