Business Owner Contribution and Drawing vs. Retained Earnings: Profit
SAS_Design
Member Posts: 2
I am sure this question has been asked, but I can't find an answer that applies to my specific business. I own a design business and I pay myself a percentage of the profit from each project. I have no start-up costs or initial investments, instead I keep a part of the profit from the projects set aside to pay for the monthly maintenance costs. My company is a sole member LLC.
My question is, do I record paying myself from my projects as
A. Business Owner Contribution and Drawing
B. Retained Earnings: Profit
Thank you,
Sarah
0
Comments
@SAS_Design,
Single LLC's would record payments to their owner as a Drawing.
Hope that helps!