Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
J
jaymew3
December 9, 2018
Question

If we are moving from sole proprietorship to LLC, can we just edit our EIN in settings, or do we need to submit the Intuit Entity Change Packet?

  • December 9, 2018
  • 2 replies
  • 14 views
My husband and I have a sole proprietorship. We recently decided we wanted to operate as an LLC, so we had to create a new business with a new name, get a new EIN, a new contractors license and new bank accounts, etc. On January 1, we want to discontinue the sole proprietorship and start operating as the LLC, though nothing else will change in our business operations. Can we just edit the EIN in QB settings and start using our new bank accounts at the first of the year, or do we need to submit this Intuit Entity Change Packet? Thank you!

2 replies

Rustler
Rustler
Level 15
December 11, 2018

LLC is not a business type

if you were taxed as a sole proprietor, and you will still be taxed as a sole proprietor, that is what your business is.

 

LLC is just  a state designation for liability protection in civil courts.

 

Whether or not you really had to change all that, depends on this page

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-a-new-ein

 

    J
    jaymew3Author
    December 11, 2018

    Thank you for your response! Much appreciated!

     

    Our state did not allow us to "convert" the sole proprietorship to an LLC. We were required to get a new EIN and register as a new business in our state, so now we technically have two businesses. We would have just changed the business name and changed to an LLC if that had been possible, as we only want one business.

     

    I'm wondering if we can just change our EIN in QB Settings at the first of the new year and start operating as the LLC, or if we have to complete this Intuit Entity Change Packet and pay the fees for them to do it. Thanks again.

    Rose-A
    Rose-A
    Level 10
    December 11, 2018

    Hey there, jaymew3.

    Allow me to provide a little more information regarding this matter.

     

    As Rustler referenced,  you can just change the company name into an LLC since you're still taxed as a sole proprietorship. Also, if you want to change your EIN, you can follow the steps below:

    1. Select the Gear icon at the top, then Account and Settings.
    2. Select Company from the left menu.
    3. Go to the Company name section.
    4. Select between EIN or SSN and fill out the box provided.
    5. Select Save then Done.

    You may find this recommended article helpful:  Change company name, address, email address, EIN, and privacy settings.

     

    For additional assistance, feel free to reach out to our Customer Care Team.

     

    Let me know if there's anything else you need, I'll be here to help. Have a great day!

    B
    BobH
    December 26, 2018

    Additionally there are some tax consequences and you must notify the Secretary of the State that you are changing the type of ownership.  Google the question and you will find some topics explaining this further.

    Need QuickBooks guidance?
    Log in to access expert advice and community support instantly.
    Terms & ConditionsAccessibility statement