Group Term Life Insurance set-up for S-Corp 2% shareholders

Hello there, utilitree. I've got steps to help you set up S-Corp shareholders to keep track of the money they invest in or draw from a business.

In QuickBooks, you can use vendors as a way to track what you, partners, or co-owners contribute to your business. If these shareholders want to make a contribution, you need to set up a vendor for every person. To do this:

1. Go to Vendors and click Vendor Center.
2. Click on the New Vendor dropdown, then select New Vendor.
3. Fill out all necessary information and select OK.

Then, let's set up a single equity account if you're the sole owner and create separate equity accounts for multiple partners or shareholders so you can see what someone invests in and draws from a business. Here's how to track their investment:

1. Go to Lists and select Chart of Accounts.
2. From the Account dropdown, click New.
3. Choose an Equity account type and click Continue.
4. Enter the Account Name.
5. If you're creating a separate account for each shareholder, click on the Subaccount of checkbox.
6. Ensure all information is complete. Then, click Save & Close.

Once everything looks good, you can create Write Checks for your shareholders to record and track the amounts given to them.

Furthermore, I'm adding this guide if you'll want to set up and track S-corp medical contributions to shareholders owning 2% or more of the corporation: Set up an S-corp medical payroll item for your corporate officers.

We'll always be ready to back you up if you require additional assistance managing group term life insurance in your account. Let us know in the comments below. Take care!