Equity and Draw for an LLC (S Corp)

[Mike or Penny Novack]

Ben Ba wrote:

>Hi Dear list,
>Two partners started a taxi company. Registered as an LLC and elected the S
>Corp Status.
>GnuCash permits to track Equity.
>
>How to start the books with GnuCash?
>  
>
Stop ---- your problem isn't really "how do I do it with gnucash?" Your 
problem is knowing how to set up and keep books for an S Corp no matter 
what software was chosen or even old fashioned pen and ink on paper. 
Either get an accountant to tell you what to do or if you want to do it 
all by yourselves a book on "Accounting for an S Corp".

Then once you know what you should be doing (in the bookkeeping sense) 
we can tell you how to use gnucash instead of pen and ink on paper or 
spreadsheets (*)


Michael D Novack


* Think of that as "paperless" and with built in arithmetic. Obviously 
you could set up spreadsheets that resembled traditional accounting 
paper in terms of how the columns were placed for "journal" and 
"ledger". But software like gnucash is auto-posting (and the posting 
process of old fashioned bookkeeping one of the major sources of error).