How to close equity accounts for sole prop vs corps and partnerships?
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How to close equity accounts for sole prop vs corps and partnerships?
There are no earthly reasons EQUITY accounts should be closed
For all three forms of ownership.
The net equity accounts represent
The net asset in the business.
As long as the business is still operating then the equity accounts remain open.
Perhaps the poster is referring to drawings and dividends? They get closed, and they're equity accounts.
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