"my husband just started the same business"
If this LLC is a Single-member Disregarded entity as a Sole Proprietorship, the Spouse can be paid through payroll; but you really need to work with your own CPA, as that might not be the Best option out of others, such as Joint Venture or Multi-Member LLC.
Get good, personal, professional guidance on this. This is Not a QB question. You are asking about Legal entity options.
Do you pay yourself weekly through payroll as an employee, or take a draw? For a draw from Equity, that would be a vendor name, not an employee name. Employee = payroll.
Im a Dispatcher with several leased drivers who i pay a certain 15% of jobs done as their pay. I have set them up as Vendors. The problem is, I have to send them a statement every week less the 15 % that I charge them for every job done.Im not able to do this on quickbooks.Any idea how?
Then, how do i incorporate Factoring into Quickbooks?The same invoices that I pay the leased drivers are the same invoices i forward to a factor.
Thank you for joining the thread, @Mwikali.
Let me help you create your invoices and statements.
The first thing you need to do is create a bill for the 15% intended for the vendor, and mark it as a billable expense. To do so, you have to turn the feature on. Also, note that this feature is available for QuickBooks Online Plus. If you're not using this version yet, please upgrade your subscription first.
Here's a screenshot of how you can mark it as billable.
Once done, create an invoice for the remaining 85% which will be given to your customer. You'll then be given an option to add the billable expense to the invoice. This way, your customer will pay you a total of 100% for every job done. Then, you may create a statement for your vendor.
The other option you may consider is editing the billable amount from 15% to 100% once added to an invoice.
However, I recommend seeking help from your accountant. This way, they can give you further advice.
If you have other concerns, please leave a comment below.
As far as Owner Equity/Owner Contribution/Owner Draw is concerned. How do I differenciate from "Gross Trucking Income" and "Owner Equity/Contribution"? Isnt that one in the same if I am a Sole proprieter?
I would like to know the answer to this as well. I keep the books for my father-in-law's trucking company. He is sole proprietor of the business, but he also operates a truck. How do I classify his income from the truck? He chooses not do an owners draw since he operates a truck. All of our other drivers are classified as contractors and are paid as such.