I have an LLC with no employees so I don't have any payroll. I pay myself through monthly distributions. How can I record this in MYOB? Should I set it up as a payroll expense, or make a separate line item for Distributions? I'd like to keep these distributions separate from my other expenses.

The way I have this set up is I created a new category within the equity accounts called Owner's Draw.

Your draw is not a paycheck, it is reducing the equity in your business, so this is the most correct way to do it.

Within the accounting program when you write yourself a check, it will Debit Owners draw(increase) and Credit Cash (decrease).

At the end of the year you will close this Owner's Draw account by crediting the drawing account and debiting Owner's Equity account.

I have not yet figured out if MYOB does these closing entries for me...but accounting wise this is how you should do it. IMO.