I am starting a new business which is registered as an LLC. I am currently writing my business plan in hopes of securing a startup loan or investors. I read that owner's do not typically pay themselves a salary, but instead "draw" as needed from the business profits. However, I am not sure how to incorporate this into the financial section of my business plan. I am using a software program called LivePlan to do my business plan. Any help would be appreciated. Thank you.

for your sole proprietorship, owner's draws are withdrawals of a sole proprietorship's cash or other assets for your personal use. Each of the owner's draws of cash will be recorded with a credit to Cash and a debit to the owner's draws account .i mean the owner's draws are not reported as expenses on the income statement of the biz. Rather, the owner's draws are considered to be a direct reduction of the owner's capital and owner's equity. So,Each of the owner's draws of cash will be recorded with a credit to Cash and a debit to the owner's draws account.


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Cash owner?s draw