What is the best way to handle the following scenario in QB for an S-corp business owed by owners A and B?
Owner A will sell their shares to new owners C and D via seller financing. Payments to owner A will be made by company check.
Based on input from a prior QB support thread, the payment to owner A will come from company profits and will be deducted from pass-through distributions for owners C and D.
This strategy will NOT change equity in QB which is fine and makes sense as owner A did not sell his stock to the S-corp but to owners C and D outside of the S-corp.
So how do I actually do all this within QB?
What needs to be set up initially?
What transactions need to happen and when to handle making payments to owner A for principal and interest and then properly deducting the payment from profit distributions for owners C and D?
Do I need a long term liability account or do I just track the loan balance outside of QB in a spreadsheet?
Is there anything else to consider or be aware of OR a better way to handle this scenario?
Thank you for your help!