I'm unsure if I should record, and how to record money owed by a partner in a multi member LLC.
One partner has made all the contributions to OE and covered the funds needed for the business to start and open, however, the other partner still owes half of that amount according to the partnership agreement.
I'm trying to find the best way to show that for 2022 one partner owes 55k in contributions, or wondering if I should show it for tax or legal reasons to make sure its known that it's owed.
And then the agreement is now that the partner will pay the owed amount when profits are made, so for future information how can I show that, or should it come from QBO moves or just have it paid as distribution and then invested back into OE by that partner instead of a trail through QBO to track it.
Also technically that money needs to go to the other partner now instead of OE since distributions in the future will be 50/50 and putting it in the company doesn't pay back the other partner. So that makes me think just keep it out of QBO altogether.
I appreciate any ideas on how you would handle it. And if you have any knowledge of how it should be handled for tax purposes as they prepare K1 info.
Thanks
