A capital account is an account used to track an owner’s equity in a business—especially in a partnership or LLC.
It generally:
increases with capital contributions and allocated profits, and
decreases with distributions and allocated losses.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.
