Level 1

Is Members Equity the same as Owners Equity?

 
Community Champion

Reports and accounting

When the company is an LLC, yes. Owners of an LLC are called Members. A sole proprietor - otoh - would be an owner. If a general partnership you could refer to Partners Equity but no matter the name they act the same.

 

And it is suggested that you have 4 equity accounts for each owner-memver-partner one of which is a parent summing account never posted to and 3 sub accounts example being Member Equity, Member Conyributions , Member Draw. This way you can keep track of annual funds movement in and out of company and post the draw and contribution totals to the third equity account on day 1 of new fiscal year.