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kbour021
Level 1

How to categorize owner contributions

Alright so we just set up an LLC Partnership and I'm getting some conflicting information on how to set up and categorize when an owner puts money into the company. We do not all have the same equity percentage. How do I appropriately set this up? I originally set up our names under "Owners Equity" and categorized them as "Owner Contributions" but I've also seen that setting it up under "Partner Contributions" can be beneficial as it track our percentage of ownership. Any help would be great!

1 Comment 1
GNJRox
Level 4

How to categorize owner contributions

It is really your preference how you want to set it up. This is how I usually set it up in COA in Desktop:

 

Equity

  • Partner 1 - Draw
  • Partner 1 - Equity
  • Partner 2 - Draw
  • Partner 2 - Equity

Here is a screen snip of one of my COAs:

Annotation 2020-07-16 131854.png

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