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Level 15

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LLC is not important, how the LLC is taxed for federal income is the key.  If the LLC is taxed as a partnership (form 1065) then you book income the company makes during the fiscal year

At the end of the year the company has made a net profit (hopefully), on the first day of the new fiscal year QB moves that Net profit to the retained earnings account.

Then you do a journal entry to distribute net profit to the partners

debit RE for the full amount in the account
credit partner 1 equity for 50%
credit partner 2 equity for 50%

A partnership does not pay income taxes, the partners receive a form K-1 which is created as part of the form 1065. That K-1 provides each partner with the amounts of income and expenses for the business allocated to the partner and he uses that information to fill out his personal income tax return.

Income during the fiscal year is not "deposited" to the partners

If the partners need money from the company then the company writes them a check and uses partner equity drawing as the expense for the check.

I recommend you have the following for owner/partner equity accounts  (one set for each partner if a partnership)

[name] Equity
>> Equity
>> Equity Drawing - you record value you take from the business here
>> Equity Investment - record value you put into the business here

When you clear (roll up) RE to equity, you do journal entries to roll up drawing and investment too

IF the LLC is taxed as a c- or s-corp, none of the above applies

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