Partnership LLC and recording Owner Draws?

They are both equity accounts. One adds, one subtracts. Since they are equal types then negative for draw and positive for contributions is correct.

To tie them together we recommend you have actually 4 equity accounts for each member. You already have draw and contribution. Now add just Member Equity. Then add an additional equity account that is never posted to and make all of the three working equity accounts child accounts of the parent summing account.  The sum will be the sum total of each member's total equity.

Doing this allows you to see annually what is contributed and what is withdrawn by each member.  AT end of year you split profit according to ownership and post to the first sub-equity account. On day 1 of the next year you move both prior annualized draw and contribution into Member Equity, thus creating a fresh start to annually calculate draw and contribution

Can you be so kind to share a screenshot showing your example?  What confuses me is I used QuickBooks default Equity accounts, it defaulted with 2 accounts for 2 members, I believe it had 'Member 1 Equity' and 'Member 1 Draws' and then same for Member 2.

The default is not always best, despite being workable on the surface. The default gives you no easy method to see your contributions separately or to see your actual equity at a glance without deduction of draw from equity.

What we propose looks like this. The indents indicate sub accounts of the parent

Overall Member 1 Equity 

      Member 1 Equity

      Member 1 Contributions 

      Member 1 Draw

You never post to Overall Equity but that is a running total of your equity at any point in time. The existing Member 1 Equity is the account that year end retained earnings are posted to. The company profit goes to retained earnings and then is manually split by you to the two member equity accounts. You will know on 12/31 how much draw each member took for the year and will also know if any member added cash to the business or purchased business supplies with personal funds

Sorry to sound naive, so I will have 8 accounts, 2 Overall Member Equity accounts with the 3 subs.

1.)  When an owner adds money to the LLC I post it to the LLC's DDA showing coming from the Contribution account then?

2.) When it comes time to take some profit from the various jobs the LLC does (this is random, not just once a qtr or once a year), then I show money leaving LLC's DDA account and going to the designated member's Draw account? Or Equity sub account?

3.) Since I have only had 4 accounts total, member draws and member contribution accounts thus far, how do you suggest I transform these accounts? Been using them for about one year now.

Yes, 2 parent accounts that are only for summing. And 3 sub accounts for each member.

1. Yes, added money is Contribution from whichever member. It can also be other than cash, such as member paid a company bill with their personal credit card or gave a box of tools to the company.

2. It depends. Since you are distributing funds based on a member's contribution of time and effort these might fall under the definition of "guaranteed payments" which are then an expense to the partnership and (possibly) self-employment income to the member paid. Being that these are paid in disregard for the profitability of the business and do not affect each member's basis then do NOT pay these against the Draw. Here is one link discussing such payments  https://www.investopedia.com/terms/g/guaranteed-payments-partners.asp

2A.  End of year profit split, if paid out , OTOH, is Draw.  If no end of year distribution is made then it stays in that member's equity

3. Your contribution account, if the default, is simply considered member equity.  If it already is named such, leave it as is, if you renamed it as contributions, rename it as Member X Equity, Then create a new Member  X Contribution equity account for each member. That will bring you to 6. 

Remember, the Member Equity account is where you post profit or loss (when books are auto-closed profit/loss should first land in Retained Earnings from which you distribute to members based on ownership.  This is the number that goes on the K-1, line 1, 2, or 3  regardless of how much or if any cash was distributed over the year (other than the aforementioned guaranteed payments which do not affect equity ) G.P goes in line 4 (no 1099 necessary)

6 is the minimum necessary to properly track draw, contribution, and equity. The choice to add the summing account for each group as a parent (create the parent then edit each sub to be a child of the parent) is optional but is useful in viewing any equity differences between the members.

And just because one member has taken more draw or contributed more in cash or goods does not by itself change the balance of ownership, it just can sit there as a difference until balanced or when the partnership dissolves

I am following up on this as I have had some time to make changes to the chart of accounts.

So I created the Overall Equity for both my partner & myself.  Then I set the two previous default accounts for each of us as sub accounts.  They are Equity and Draws - those are the names of the sub accounts.  I don't recall renaming them this, but I may be mistaken. They were however the default ones with QB.  I am confused on how to keep things clean and have that third account titled contributions.  I realize what the contribution is, but now if I make a Contribution account it wont have the contributions I recorded originally under the Equity account.  So I am wondering, do I rename the Equity account to Contributions, then create a new Equity account that has nothing recorded in it?

I do not have anything posted to retained earnings. That was my following up question, since this year we sold a spec build, I need to somehow record that to retained earnings I think per your suggestion?  Right now I have a 'Construction in Progress' account type of 'Other Current Asset'.    When we sold our spec build, I created an invoice for the Spec job.  I then received payment for that 'customer' which was technically the payment coming from the closing company.  I applied that check to the invoice, and then had the profit go to a Labor Item which is tied to a Labor Income (Account type of Income).  So currently the profit from the Spec job is sitting in Labor Income account. 

The distributed funds based on our time is not a guaranteed payment, it's just a draw.  That's how I am treating it for tax purposes, and yes it is considered Self Employment income to each of us per the amount we take or "draw" from the LLC's profit.  If a job does not have profit, even though we tracked our time then it wouldn't matter as we would not take any money from the LLC.  But it is assumed that we will always make a profit from a job, it's just that our split of that profit is strictly determined by our hours of participation in that specific job.