How to Record Paydown Loan / LLC?

Thank you for sharing some details about your concern in keeping track of loan payments in QuickBooks Online, @Leroy105.

I have some thoughts about the process.

To start, you must create a liability account to record the loan and its payments. For more information, see this module: Learn how to record loans and repayments in QuickBooks Online.

After that, you can record the personal money that you receive from your partner as their payment by setting up an equity account. Once done, record the capital investment. Lastly, follow the steps below to pay back the money from the capital with an actual check.

1. Click on + New.
2. Choose Check.
3. Type in the person or business you’re paying back.
4. Go to Check no. fill in a check number.
5. Type in the following information in the Category Details area.
   • First line: The equity account you use to track the investment in QuickBooks, and the amount you're paying back today.
   • Second Line: The expense account you use to track the interest you pay, and the amount of interest that is part of your payment today.
   • Other lines: Any additional fees and their appropriate accounts.
6. Once completed, click on Save and close.

On the other hand, see this module when you're paying using a credit or debit card.

Feel free to read these articles to know more about accessing and handling liability reports in QBO.

• Run reports in QuickBooks Online
• Customize reports in QuickBooks Online

Please let us know if this goes. Just hit the Reply button so we can respond as soon as possible. Wishing you a great holiday!

@Leroy105 

Is this a partnership or S-corp?  You mentioned 50/50 partners, which implies a partnership but also mentioned capital stock, which implies a corporation since a partnership does not issue stock. 

This is a good point.   The holding company is actually an LLC (taxed as a partnership, not an S-Corp like the operating company).

Would that make this a Capital Contribution vs. Stock?