How do I set up Owner Draws and how does it work?

The owner's draws are usually taken from your owner's equity account. The owner's equity is made up of different funds, including money you've invested in your business. Business owners can withdraw profits earned by the company. Or, the owner can take out funds they contributed.

@mjohnson3 

For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity (do not post to this account it is a summing account)
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

I am set up as an LLC. Will I still set it up the same way? 

Thank you. I am set up as an LLC. How do I set the Draws up?