Hi there, @lostinaccounting. I appreciate you contacting our Support Team about this.
Let me get the help you need in recording an owner's draw in QuickBooks Online (QBO).
If you're a sole proprietor, you must be paid with an owner's draw instead of an employee paycheck.
If you're still unable to create an Equity account, here's what you'll need to do:
- In the left menu, click Accounting.
- Go to the Chart of Accounts tab.
- Click the New button.
- From the Account Type drop-down, choose Equity.
- From the Detail Type drop-down, choose Owner’s Equity.
- Enter an opening balance.
- Click Save and Close.
Once done, write a check:
- Click the + New button in the left menu.
- Select Check.
- Pick the bank account where your money will be withdrawn.
- Fill in the necessary fields.
- In the Account field, select the Owner's equity you created.
- Select Save and Close.
For more details, see this article: Set up and pay an owner's draw.
As for paying a contractor, you have the option to use Direct Deposit, take a look at this article to learn more about this: Pay a contractor with direct deposit.
If there's anything else I can do for you, feel free to reach back out. I'd be happy to help. Have a great day.