QB Issue Resolution:
For a company taxed as a sole proprietor (schedule C) or partnership (form 1065), I recommend you have the following for owner/partner equity accounts (one set for each partner if a partnership)
[name] Equity (do not post to this account it is a summing account)
>> Equity Drawing – you record value you take from the business here
>> Equity Investment – record value you put into the business here
For each partner, make a deposit to the company bank account and use partner name equity investment as the source (from) account for the deposit, the amount is $1K each deposit
Then use write checks, do not print it is just a data entry form, change the check number to EFT, and pay the start up expenses that are already paid for.
You do not pay back partner investement. Partners can draw on their equity as they wish, when they wish. However, drawing equity below zero, means effectively that the partner is using some of his share of the end of year profit distribution, and many partnerships put a clause in the partnership agreement that you may not draw down to less than zero equity. If a partner were to draw to less than zero equity, and if the partnership incurred a loss that year, the partner with negative equity would have to pay back the amount necessary to get back to zero.
Resolution for Issue 'How do I track initial owner investment and offset opening expenses?' available: Yes (Solved).
Source: Intuit Community forum.
How do I track initial owner investment and offset opening expenses?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for equity accounts
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