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Seves
Level 1

Transition in Quickbooks from LLC to S-Corp

We have been using Quickbooks since 2023. We started as a sole proprietor LLC with no employees and gradually expanded from there. We have had a payroll now for about a year and a half and it is FINALLY working seamlessly after many frustrations with set up. 

We are making the switch this year with the IRS to be an LLC electing S-Corp status. So the question is whether we have to create a new file with quickbooks or whether we can simply change the settings under advanced accounting and keep right on going. 

How is the best way to handle this transition in Quickbooks online?

Thank you for your help. 

2 Comments 2
Mirriam_M
QuickBooks Team

Transition in Quickbooks from LLC to S-Corp

It's great to see you posting in the Community forum, Seves. Thank you for providing detailed information about your concern.

 

In QuickBooks Online (QBO), you can change the business type to S-Corp so your tax forms will be updated accordingly. It is essential that this information is accurate and matches what your business has registered with tax authorities to avoid any issues with tax filings or processing related forms.

 

Here’s how to review and update your legal information in QBO:

 

  1. Sign in to QBO with your primary administrator credentials.
  2. Click the Gear icon in the upper right corner.
  3. Select Account and settings.
  4. In the left-hand menu, choose Company and go to the Legal info section.
  5. Click Edit, then change the Business type
  6. Choose Save.

 

I also recommend consulting your accountant, as they are best equipped to provide personalized guidance, review your specific situation, and ensure your compliance with current IRS rules.

 

If you need further assistance, please don’t hesitate to reach out. We're here to help.

Mirriam_M
QuickBooks Team

Transition in Quickbooks from LLC to S-Corp

Hi Seves,

 

I just wanted to follow up to check if the solutions I provided helped resolve your issue. Please let us know if everything is now working as expected or if you’re still experiencing any problems.

 

We’ll be glad to assist further if needed.

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