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cbmsales
Level 1

I'm a new LLC Scorp using QB's online for my accounting. One man company trying to understand how to clear Owner Draw for year end.

Net income of 80K, Owner draw of 20K, total equity of 60K.
Solved
Best answer January 11, 2021

Best Answers
Rustler
Level 15

I'm a new LLC Scorp using QB's online for my accounting. One man company trying to understand how to clear Owner Draw for year end.

Owners draw is cleared using a journal entry

debit equity and credit owners draw

 

But s-corps require that the working owner be on salary, and there are no equity accounts.  They are shareholders

View solution in original post

2 Comments
Rustler
Level 15

I'm a new LLC Scorp using QB's online for my accounting. One man company trying to understand how to clear Owner Draw for year end.

Owners draw is cleared using a journal entry

debit equity and credit owners draw

 

But s-corps require that the working owner be on salary, and there are no equity accounts.  They are shareholders

View solution in original post

cbmsales
Level 1

I'm a new LLC Scorp using QB's online for my accounting. One man company trying to understand how to clear Owner Draw for year end.

Got it. Thanks

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