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Anonymous
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Transfer funds between two companies

I need to set up two separate budgets in quickbooks for one company and have not been able to do that.  So I thought that I would set up a separate company and then transfer funds to similar accounts in the new company.  Is either of these possible.

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Best answer 03-18-2018

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Established Community Backer ***

Re: Transfer funds between two companies

If you are in the US, then each company is required to have its own accounting file, even if you are a sole proprietor. You just include one schedule C for each company in the 1040 filing.

 

Moving funds between companies will depend on how the companies are taxed, if both companies are some combination of sole proprietor or partnership, then you can take money out using an equity draw, and put it in the other as an equity investment.

 

But doing it that way also means the receiving company is not getting that money as sales income, if in fact that is what it is.

3 Comments
Established Community Backer ***

Re: Transfer funds between two companies

If you are in the US, then each company is required to have its own accounting file, even if you are a sole proprietor. You just include one schedule C for each company in the 1040 filing.

 

Moving funds between companies will depend on how the companies are taxed, if both companies are some combination of sole proprietor or partnership, then you can take money out using an equity draw, and put it in the other as an equity investment.

 

But doing it that way also means the receiving company is not getting that money as sales income, if in fact that is what it is.

Not applicable

Re: Transfer funds between two companies

IF i TRANSFER THE FUNDS FROM THE BANK ACCOUNT # TO THE EQUITY ACCT #,HOW DO I MAKE THE ENTRY ,WITH A journal entry or what?

Established Community Backer ***

Re: Transfer funds between two companies

You do not transfer to equity, equity is automatically calculated, it is the amount of the business you own, total assets less total liabilies

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