Bookkeepers: What you need to know about legal entities and owner compensation

[@tdexter4959]

So helpful!! I really appreciate the length and focus on one topic.

[@5MinuteBookkeeping]

So glad it was helpful!

[@beckyh3041]

Thank you. Always great content and information from you!

[@5MinuteBookkeeping]

You're welcome, Becky.

[@danielm.wekesa809]

Thanks for sharing these useful tips dear Veronica.

[@5MinuteBookkeeping]

You're welcome, Daniel!

[@SaerJr-n1b]

I have been looking for a video like this for ages!! Thank you!!! Question - If a entity is filing a 1065 and paying the owner guaranteed payments - should those guaranteed payments be a business expense (on the p&L) or a distribution (on the balance sheet)?

[@5MinuteBookkeeping]

Guaranteed payments to partners are expensed. They are not a distribution.

[@SaerJr-n1b]

@@5MinuteBookkeeping Thank you!! I thought that is what I understand. I appreciate the confirmation.

[@glenw.3813]

Thank you Veronica!

[@5MinuteBookkeeping]

You're welcome!