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johnjarrell
Level 1

How do I change my filing status from C corp to S corp in QB?

I have been operating my business, as a C-Corp for the last 10 years, this year I filed a form requesting to change my filing status to a S-Corp. Can I update this new filing status in QB or do I have to create a new company file?

Solved
Best answer December 26, 2018

Best Answers
john-pero
Community Champion

How do I change my filing status from C corp to S corp in QB?

You can make tgat change for entity filing type in My Company , edit your details.

As an S corp for anyone even starting out is to establish  a C and then make a timely election there should be no change in FEIN and nothing further to modify as of election date. Your corporation will cease to pay corporate income tax as profit will pass through to shareholder.

View solution in original post

john-pero
Community Champion

How do I change my filing status from C corp to S corp in QB?

I am going to suggest a different approach for a second company file for this situation. Use the copy company function to create an exact duplicate. In new company condense data, and edit the entity type as before. Thos will keep the old company for C corp tax forms and new S for forms going forward.  Like I said, you can keep history since your EIN does not change, only your forms you file

 

and hopefully you are choosing end of fiscal year for change ad it is easier to close out 

View solution in original post

7 Comments 7
john-pero
Community Champion

How do I change my filing status from C corp to S corp in QB?

You can make tgat change for entity filing type in My Company , edit your details.

As an S corp for anyone even starting out is to establish  a C and then make a timely election there should be no change in FEIN and nothing further to modify as of election date. Your corporation will cease to pay corporate income tax as profit will pass through to shareholder.

View solution in original post

VivienJ
QuickBooks Team

How do I change my filing status from C corp to S corp in QB?

You came to the right place, johnjarrell.

 

I'm here to provide an overview about the process of changing business entity in QuickBooks Desktop. 

 

You can opt to create a new company file to operate your business under S corp. This helps the program recognize that there are changes with your tax forms and still have access to the C corp data come tax time. 

 

Refer to the steps below:

  1. Go to File at the top menu bar, choose Create a new company.
  2. Select Express Start or Detailed Start
  3. Fill out necessary information, like business name and industry. 
  4. Select S-Corporation as the company type and click Continue
  5. Follow the prompt to save the new details. 

Here's an article for more information:

 

Create QuickBooks Desktop company file

 

Once done, export all the lists (Chart of accounts, vendors, customers, employees, etc) from the old business's QuickBooks file and import them into the new one. Please note to consult with an accountant to ensure all your transactions balances, such as the fixed assets and equity section are set up correctly. 

 

I've added an article with a quick view about the file types and formats you can bring in to or out of the program:

 

Import/export overview 

 

These steps and resources can help you with the setting up of your new account. 

 

The Community is a great avenue to connect with accountants and other QuickBooks users. If you have other concerns, feel free to drop a comment below. I'll be around. 

john-pero
Community Champion

How do I change my filing status from C corp to S corp in QB?

I am going to suggest a different approach for a second company file for this situation. Use the copy company function to create an exact duplicate. In new company condense data, and edit the entity type as before. Thos will keep the old company for C corp tax forms and new S for forms going forward.  Like I said, you can keep history since your EIN does not change, only your forms you file

 

and hopefully you are choosing end of fiscal year for change ad it is easier to close out 

View solution in original post

JeanL2
Level 1

How do I change my filing status from C corp to S corp in QB?

That copying company does not seem to work now, 

Ryan_M
QuickBooks Team

How do I change my filing status from C corp to S corp in QB?

Hi @JeanL2,

 

The option to create a copy of your company file in QuickBooks Desktop (QBDT) is still available. 

 

Let's go through the steps you need to take:

 

  1. Open the company file you want to duplicate.
  2. Press F2 to open the Product Information window.
  3. Search for the File Information section and take note of where the company file's location. 
  4. Back up your company file.
  5. Use the backup to restore your company file.
  6. Rename the file after the restoration process, then save it to a unique folder. 

Open this article to continue the process: Create new company files from existing ones in QuickBooks Desktop. Look for Step 2: Remove transactions from the copied company file.

 

In case you encounter a problem with your backup file restoration, see this article for the steps: Fix backup company file issues in QuickBooks Desktop.

 

Feel free to get back to me if you have other questions about the process of creating a copy of your QBDT company file. I'll be sure to help you out. 

traffic
Level 1

How do I change my filing status from C corp to S corp in QB?

So I am changing my company retroing back to January 1st.  It comes up and says income tax settings now invalid and will be deleted in all accounts. Continue?  If I say yes, all my data is still there correct just the tax forms change?

ZackE
QuickBooks Team

How do I change my filing status from C corp to S corp in QB?

Thanks for joining this thread, traffic.
 

The notification you're seeing is explaining that if Yes is selected, any invalid income tax settings will be deleted from each of your accounts. No records will be removed during this process.
 

If you'd like to perform a backup of the company file prior to making a decision, I'd be more than happy to guide you through the process.

 

Here's how it's done:

  1. In your top menu bar, go to File, then Switch to Single-user Mode.
  2. Access your File drop-down list again and move the cursor over Back up Company.
  3. Click Create Local Backup.
  4. In the window that displays, choose Local Backup, then hit Next.
  5. Find your Local Backup Only section and press Browse to pick where you want to save the file.
  6. If necessary, set a number of backups you want to keep.
  7. A brief test will be ran to confirm your file's configured properly.
  8. Click OK.
  9. Select Save it now, then Next.

 

Now you'll be equipped with a backup company file that can be restored at any time. This will come in handy if you choose to select Yes and find that things were changed that shouldn't had been.
 

Please let me know if there's any additional questions. I'll be here to help. Have an awesome Wednesday!

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