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ffoerster
Level 2

owners draw

i have a questions is there advantages and disadvantages to owners draw accounts?

2 Comments 2
JessT
Moderator

owners draw

Hello there, ffoerster!

 

Can you clarify your question a bit more? Is there any specific setup that you want to achieve? Here in the Community, we can help you with technical stuff, like guiding you with creating an owner's draw account, creating transactions using that account, etc. With regards to the accounting side of that account, I'd recommend reaching out to an accounting professional.

Rainflurry
Level 15

owners draw

@ffoerster 

 

As I assume you're aware, owner's draw accounts are applicable to sole proprietorships (SP) or LLCs taxed as SPs.  Being a sole proprietor, you cannot pay yourself a salary so an owner's draw is the only option to pay yourself.   

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