Withdrawals

Also referred to as ‘Draws’; withdrawals represent the dollar amounts taken out of the business by the owners. Commonly used in records for Partnerships, Limited Liability Companies, and sole proprietorships.

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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