Looking for feedback from the community surrounding a multi-member LLC (3 owners) that are performing work and therefore would like to track hours worked. The goal of the initial tracking is to assist with measuring how accurately we are estimating jobs. Given we are owners/members - not employees - would trying to track our time in the timesheets module in QB cause reporting or systematic issues when it comes to end of year financials? (a/k/a - we do not want to negatively impact any financial statements to show we have employees, as we do not. We are owner/members looking to track time). Lastly, why do some of the posts recommend setting yourself up as a vendor when you are an owner of a company? Then other posts advise against it. Thank you.
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I am setting up the chart of accounts for a multi-member LLC (3 partners). Upon reading posts from the community, I wanted to get clarification on the best practice for setting up the equity accounts. Should the structure be set up to have one 'parent' equity account for each of the three members with sub accounts for the Contribution and Draw. For Example: Partner 1 - Equity Account (parent) Partner 1 - Equity Contribution (sub account) Partner 1 - Equity Draw (sub account) - follow this for partner 2 and 3 as well This would then support roll up reporting by partner Reason for asking for the clarification is - the default chart of accounts has 2 parent account for Equity - Owner Investment and another for Equity- Pay & Personal Expenses. I understand the 3rd equity account is retained earnings to support year end account balancing. So I am trying to determine if these Equity accounts should be structured with a parent for each partner (which would give me 3 parent accounts) OR structured for each a parent for Equity - Investment then another for Equity - Draw with 3 sub accounts each. Equity - Investment (parent) Equity - Investment Partner 1 Equity - Investment Partner 2 (etc.) Thank you in advance for any additional information that can be shared. ~Melissa
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