Draw

A draw is any transfer of earnings in a self employment operation to the owner or on behalf of the owner is called a ‘Draw’. Typical legal entities that use this term include sole proprietorship and partnerships.

Owner’s Draw in Business

Owner's Draw

When an owner of a small business operation transfers money from the business bank account to their personal bank account the transaction is commonly referred to as a ‘Draw’. There are other terms but this is the traditional word used.  The technical definition is: ‘A transfer of earnings from the business on behalf of the owner is referred to as a draw’.

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