Hi John,
Thanks so much for the detailed response.
I understand the concepts you outlined regarding equity and draw accounts.
These member loans are being used in place to equity contributions in certain circumstances. They are well documented, secured, include a reasonable interest rate, and scheduled payments.
The purpose of going through this trouble is to move some income to interest expense. This of course is still income but avoids self employment tax on the that portion.
I just wasn't sure if it was necessary to split the loan account out separately in QB. Currently, I am using a single loan account in QB, and tracking each loan individually outside of QB.