Draw

In finance and investing, a "Draw" generally refers to the act of an owner or partner taking money from a business for personal use, often in a sole proprietorship or partnership. Unlike an official salary, a draw is not considered an expense; instead, it reduces the owner’s equity or ownership stake in the business. It’s a way for owners to access profits directly, typically done periodically. Draws are not taxed separately—they are part of the owner’s overall business profit, which is reported on their personal tax return.