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Experienced Member

Changing Inc to LLC

We use QB mainly for invoices. We do not do online banking or payroll. We are changing our business from an Inc to an LLC. What is the best way to cease using the old business records to start fresh while using our same customer base and retaining our customer information for billing with the new company status?

1 Comment
QuickBooks Team

Re: Changing Inc to LLC

You've come to the right place, Ruchelgirl.

 

I have just the steps you'll need to stop using the old business records and start fresh while using the same customer base.

 

To give you an overview of the process, we'll be creating a backup copy of your company file and restoring it in QuickBooks. Then, we'll use the Condense Data tool to remove all transactions, but keep the profile of your customers. That said, let me walk you through the step-by-step process:

  1. Back up your company file.
  2. Restore the backup. Make sure to save it to a folder where you want to keep the file, and then rename it.
    - This will create a copy of the original file, with a different name.
  3. Click the File menu once the backup has been restored.
  4. Select Utilities, then Condense Data.
    - If you'll receive any message, click Yes.
  5. In the Condense Data window, select All Transactions.
  6. Click Next and follow the onscreen instructions to remove the transactions.

All of this information and more is available from our guide on how to create a new company from an existing one.

 

After creating the new company file and using the condense tool, here's how you can change the business from an Incorporation (Inc) to a Limited Liability Company (LLC):

  1. Click the Company menu.
  2. Select My Company.
  3. In the Company Information section, click the pencil (edit) icon.
  4. Select Report Information.
  5. From the Income Tax Form Used drop-down menu, choose the correct option.
  6. Click OK.

 

That should do it. With these steps, I'm confident that you'll be all set with your new company file.

 

Keep in touch with me here if there's anything else you need. I always got your back. Thanks for reaching out, wishing you and your business the best.