What type entity? Just a partnership, LLC, Subchapter S-corp? Makes a difference.
If you are Subchapter S or LLC electing to be taxed as corporation then working partners MUST be paid a reasonabe wage before any distributions. If just an LLC or not formal setup then the partners cannot be on payroll and any money paid to them is draw against their share of profit, which passes through to their personal returns.
For each partner you need a set of 4 equity accounts. One top level acts only as summing and is never posted to. Under this parent account are 3 sub accounts, Partner Equity, Partner Draw, Partner Contribution
