Owners of sole proprietorships, as well as partners in unincorporated
partnerships, are not on the business payroll. Instead, they have equity in the
business. The equity of a business increases when the business makes a
Owners and partners can take money out of the business by drawing on their
equity. Payments to owners or partners are not business expenses unless the
person is being reimbursed for a business expense paid for with personal
If you track time for owners or partners, you
can write a check against
equity that is based on the number of hours worked.
Write a regular check for
any amount as a draw against the owner's or partner's equity.