How to set up owners or partners to be paid in a Sole Proprietor LLC?

A Sole Prop and an LLC (Limited Liability Company) are not the same entity formation.

As a Sole Proprietor (filing as such on your taxes, etc.) you just need to take a Draw (or an Equity Draw). 

Check in your Chart of Accounts to see if you have two Equity type account called something like  Owner's Draw and Owner's Investment.  If not create them.

When/if you put your personal money into the company, use the Owner's Investment Account to track the deposit.

When you take money out of the company, show it against the Owner's Draw. 

(Good thing to always have a quick talk with your Tax Accountant to make sure this is the way they want it shown.)

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@Regina_Lend_A_Hand_Accounting wrote:

A Sole Prop and an LLC (Limited Liability Company) are not the same entity formation.

 

A Sole Prop does not get paid a salary, they take Owner draws against Equity (balance sheet)

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Yes they are

LLC is not a business type, it is nothing more than a state registration that offers protection of personal assets in the event of a lawsuit going against the company.

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@M2FLLC wrote:

I am a LLC (Sole Proprietorship) and am trying to set up my QB Essentials with the proper accounts to pay myself.

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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

https://www.irs.gov/businesses/small-businesses-self-employed/sole-proprietorships 

You are right, I missed the word entity.

this distinction you make though,
A Sole Proprietor cannot pay themselves a salary, because they are not considered a legally separate "person", which is why they take Owner Draws against Equity as I said originally.
Single member llc can not pay the owner a salary either, or do you have something that says you can?  I can't find anything like that.

Entity is fine legal distinction lost on most users, business types for accounting purposes is the key.  A sole proprietor and a single member llc both file taxes on the same schedule C.

If you are the Sole member of a domestic Limited Liability Company (LLC), you are not a Sole Proprietor if you elect to treat the LLC as a Corporation.
Well yea, of course, electing to be treated as something else definitely means you are not treated the same

:)

guaranteed payments to partners are required to be stated in the partnership agreement, it is not an option to be selected as desired, which is what it sounds like you are alluding to.

https://www.thebalancesmb.com/what-are-llc-guaranteed-payments-4163089

:)

is there other account named Guarantee payment that is used to pay weekly to an one of the 2 LLC members?

what is the aacount type for this acccount Guaranteed payments?

yes but I need to know what is the account type