LLC Partner Payments on Balance Sheet

by Camille
(Texas)

LLC Partner Payments on Balance Sheet

LLC Partner Payments on Balance Sheet

Where do you show paying LLC partners out of the profits on the balance sheet? We do not have a salary for the partners. We just divide up the profits once expenses are accounted for. Does this show on the Balance Sheet?

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Dec 08, 2017
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starstarstarstarstar 		Partner Distributions on Balance Sheet
by: Stephanie

Thank you for your question regarding where you should show the payments made to LLC partners on the Balance Sheet. You are correct in that when you divide up the profits and pay them out, it should be accounted for on the balance sheet.

This is done be categorizing the payment to Shareholders Distributions (Owner's Equity). You can also setup subcategories under each individual partners name to track them separately, which is highly recommended as it will need to be known at tax time.

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