Need Help Classifying Distributions

pmcintosh26pmcintosh26 Member Posts: 1

Hi All,

Our business is a partnership LLC. The partners receive distributions directly from one of the companies checking accounts each month. I am trying to get help on how to classify those distributions so they still count towards our net profit as were taxed by passthrough. Right now I have them all classified as a special line item until I get this figured out, but it counts them as an "Expense" to the company the same way it would if I had a payment to a vendor or our payroll.

If anyone has any insight, please share.

Comments

  • ErikErik Administrator Posts: 194 admin

    Hey @pmcintosh26, you should be able to categorize any partner draws/distributions with an equity account. In my screenshot below, Wave has set up 2 "Owner" equity accounts, but you can add your own for partner distributions

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