Starting a small business is a rewarding achievement, but it’s no easy feat. Since you own most everything that’s connected to your business, your responsibilities and tasks can feel endless. Being a business owner is unique—you own everything in your business except for your liabilities. This is where owner’s equity comes in: It’s one of the most important lines in your financial statements and represents your net worth.
Learn what owner’s equity is, how it affects you and your business, how to calculate it, as well as helpful examples.