Accounting entries must begin with entity type, you seem to be mixing up these 3 entity types:
- Owners = Sole Proprietor
- Partners = LLC/Partnership
- Shareholders = Corporation
Regardless of which of the above you are, you must choose to file taxes as one of these:
- Sole Proprietor
- Partnership
- S Corporation
- C Corporation
This defines how accounting entries must be done. For example, many LLC's file taxes as an S-Corp.
In that case accounting must follow rules for S-Corp, then owners are Shareholders and Employees.
Investment is company is different than a loan (which is paid back). One is Equity and other is Liability.
I have never seen a need to separate initial investment from later contributions, but see QB does that,
so maybe there is a reason. Never seen split on any other accounting system.