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Senior Explorer ***

Planning on S-Corp Election - Set up QB for S-Corp or LLC?

I will be electing an S-Corp status in the near future. I am currently a single member LLC. Would it make more sense to set QB up like an S-Corp (payroll, etc), or to set up as an LLC and convert? Looking for logical opinions from people with more experience and knowledge than me!

 

Thanks!

3 Comments
Established Community Backer ***

Re: Planning on S-Corp Election - Set up QB for S-Corp or LLC?

Sounds like you are not presently using QB

A SMLLC that files as an s-corp, should have its CoA set up for the corporate structure. And that is mainly the shareholder equity accounts.

 

Look over these links before making the choice,
https://www.inc.com/guides/201103/s-corp-vs-llc.html

https://www.incorporate.com/starting-a-business/business-structure-comparison-chart/

https://quickbooks.intuit.com/r/taxes/s-corporation-owners-avoid-these-tax-traps/

and especially this one
https://www.thetaxadviser.com/issues/2014/jan/nitti-jan2014.html

Senior Explorer ***

Re: Planning on S-Corp Election - Set up QB for S-Corp or LLC?

Thank you for the articles. I have a couple of appointments to meet with CPAs and attorneys to decide if I should elect S-Corp status. I'm starting to get behind in my accounting. I am currently trying to set up QB. 

Not knowing which way I am going to go, is it better to set QB up as an S-Corp and if I don't go that route change it to an SMLLC?

Established Community Backer ***

Re: Planning on S-Corp Election - Set up QB for S-Corp or LLC?

IMO you are better off delaying the set up until you make a decision