members equity account

Limited liability companies (LLCs) have "members," which would explain why the Chart of Accounts would have a "Members Equity" account (as opposed to an "Owners Equity" account). I would be surprised (not having gone through the setup for an LLC since 2002) if QB 2010 for Mac automatically named the account that way, particularly since there's no federal tax form specifically for LLCs from which to choose in the My Company preference.

You asked where QB 2010 for Mac got its "figures." Are you saying that the starting balance for the Members Equity account is not zero? The user's guide says, "Although the Create New Company dialog makes setting up a company file quick and easy, it does not enter any opening balances or transactions for any accounts" (page 27). The user's guide then goes on to explain how to enter opening balances.

Is this your file or your client's file? If it's your client's, I surmise that your client might have named the equity account and entered the opening balance.

Hello StephanieJoyce,

Debi is right, Members equity is not one of the accounts created when you create an LLC company here. The default accounts are:

• Payroll Liabilities
• Partner 1 Equity
• Partner 1 Draws
• Partner 2 Equity
• Partner 2 Draws
• Retained Earnings
• Opening Balance Equity
• Payroll Expenses

It sounds like one of those accounts was renamed. When you create a balance sheet account and enter an opening balance, the default offset would be to the Opening Balance Equity account. I would look at the register and the transactions for that account, which will help determine their origins. If the totals aren't from opening balances, then here are a couple of other possibilities:

1. There may be an item set to this account. 
2. The retained earnings account was renamed.

Please let us know if this helps or post back with more information!

Amy K

Amy,

I have Quickbooks Pro 2010 and Quickbooks automatically created a Members Equity account as well as posted a year end closing entry.  Is there a way to delete the account  or change the closing entry?

Thanks,

Matt

mattconfer, if you're using QuickBooks Pro 2010, you need to post your query in one of the Windows forums. This is the QB for Mac forum.