It mostly depends on how you set up your business (sole proprietor, partnership, LLC, S-corp, or C-Corp). I'm a little confused about what to do with the "Shareholder Contributions" and "Shareholder Distributions" accounts in Quickbooks vs the Balance Sheet in TurboTax. He has written more than 100 books, which have sold more than five million copies.

","authors":[{"authorId":8982,"name":"Stephen L. Nelson","slug":"stephen-l-nelson","description":" Stephen L. Nelson, MBA, CPA, is the bestselling author of more than 100 books on computer and business topics, including all the previous For Dummies books on Quicken. For employee/shareholders, however, there's no fixed cut-off point. In addition to this "reasonable" salary -- which the IRS requires that you be paid in exchange for the work you do -- you can receive additional money in the form of a shareholder distribution of profits. A shareholder's amount at risk is calculated as the adjusted stock basis plus the adjusted loan basis. if there are multiple shareholders could we just create 1 account each and debit/credit that account? You really need to check with your tax accountant on the loan. On the other hand, Owner Draw is an equity-type account used when you take funds and put money in the business. In fact, college accounting textbooks often use several chapters to describe all the ins and outs of corporation owners equity accounting.\r\n\r\nAs long as you keep things simple, however, you can probably use three or four accounts for your owners equity:\r\n
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