Equity and Draw for an LLC (S Corp)

[John Ralls]

On Nov 17, 2012, at 6:01 AM, Ben Ba <benbarszcz at gmail.com> wrote:

> Ok, I have read through some of the topics on accountingcoach.com. I agree
> it is a very good source of info.
> I struggle though to grasp the idea of an LLC that elected to be treated as
> an S Corp. And specifically I not know whether it is a difference in
> GnuCash if Capital Contributions be in Liabilities of the LLC (as an S
> Corp) or in the Equity type account (as a Partnership). My understanding is
> that an S Corp LLC is a seperate entity and Contributions should be ITS
> liability to the members/contributors. If it was a partnership maybe such
> acccount should be in the equity of the LLC because the members take the
> whole profit/loss on themselves.
> 
> Where do I err?
> -- 

In not hiring an accountant. Getting this right is important to you and your partners tax returns, and it's worth it to get professional help to set it up for you even if you do the day-to-day bookkeeping yourself.

Regards,
John Ralls