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JaeAnnC
QuickBooks Team

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I appreciate you coming back to this thread, @wells225. I'd be pleased to go into further detail on how QuickBooks Online (QBO) handles Owner's Equity.

 

Yes, you're right. The Owner's Draw is the way an owner pays himself rather than taking a salary from the business. After covering all business expenses, the money obtained from the company must be deducted from the company's profits. It differs from the situation where an owner receives a salary through a payroll service and employment taxes are automatically withheld.

 

Furthermore, Rainflurry is correct. Since you own a corporation and are involved in its day-to-day operations, you're unauthorized to take the owner's draw. Such businesses distribute or pay dividends from their profits. That said, you need to pay yourself a salary by adding yourself as an employee and generating payroll. If it prompts an error, I recommend making your name slightly different from the original so the system will no longer detect it. 

 

As your future reference, I'm sharing this article that will help you generate payroll information, which is helpful during the filing of taxes: Run payroll reports.

 

Let me know if you need additional information about Owner's Draw in QBO. I'll be more than glad to provide further details. Keep safe and have a great rest of the day!

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