A drawing account is an account within a proprietorship or partnership used to track the withdrawals made by an owner. Typically closed at year-end, its balance is transferred to the owner's equity account or profit and loss account.
An unincorporated business owned by a single person, where the individual proprietor has rights to all profits and responsibilities for all liabilities. The income is reported on Schedule C of Form 1040 and is subject to self-employment tax.
