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Level 1

enhanced payroll sole proprietor converted to LLC

Hi,

I am the accountant for a sole proprietor using QB Desktop with enhanced payroll. On December 31 2020 the business will be transferred to a new LLC with three members (taxed as partnership). This is a complete transfer of the business, employees, liabilities, etc. I am concerned about the effect of changing EIN and state tax accounts in the company file.

 

1. Will the W-2s and other tax filings for 2020 be filed properly?  In other words, do I have to finish all year-end filings, showing final return, before I make changes to the company file and issue the first paychecks of 2021? Do I have to create an entirely new company file (I want to avoid this if possible)?

 

2. Does anyone have a checklist of things I need to change in the company file (payroll items, agency accounts, direct deposit information, etc)?

 

3. Do I need to tell Quickbooks enhanced payroll of the change or is it sufficient to make changes in the company file or create a new one.  

 

4. I am managing payroll for 3 companies under our current quickbooks license (the max allowed). If I have to create a new company file for the LLC how do I transfer the payroll enroll 

 

Thanks!

Solved
Best answer November 22, 2020

Best Answers
QuickBooks Team

enhanced payroll sole proprietor converted to LLC

You've got me here today to address your payroll and company concern, @jake31.

 

Let's begin with your question number 1. To ensure that your tax forms will be filed properly, I recommend processing them before converting your company file to an LLC. This way, you can start fresh records for the next fiscal year. 

 

After that, you'll need to change your company information in your QuickBooks so your tax forms will be updated if you want to use the same file for the next year. Your payroll and other transactions will be recorded as usual. 

 

To change your information:

  1. Click on Company.
  2. Select on My Company
  3. Click on the pencil icon to edit the information.
  4. Select on Report Information.
  5. Fill in the necessary information.
  6. Click on OK

However, if you wanted to create a new company file for your LLC, you can create a new company file by copying the existing file with the same vendors, customer contact information, chart of accounts and lists. Aside from that, all the lists, transactions, templates, and preferences in the original company file are also carried over.

 

To learn more about this process, please check out to this article: Create new company with lists, templates, preferences, and accounts (empty) from an existing one.

 

When it comes to your 2nd question, you can use this article as your reference to guide you in changing your business information in QuickBooks: Update your business name and address for QuickBooks Desktop Payroll.

 

For your third question, you'll need to reach out to our Customer Care Team so they will be aware of the changes that you made. They will also help you in modifying your EIN

 

Lastly, you can transfer your payroll subscription to your new company file. To do this, you have to add the new EIN to your subscription. It'd be best to contact our support so you'll be guided accordingly.

 

Here's how you can reach them:

  1. Click on Help at the top.
  2. Press on QuickBooks Desktop Help.
  3. Hit on QuickBooks support.
  4. Choose your preferred way on how to get connected with our support.

Please keep me posted if you have any other questions, I'm always here to help. Wishing you the best. 

View solution in original post

1 Comment
QuickBooks Team

enhanced payroll sole proprietor converted to LLC

You've got me here today to address your payroll and company concern, @jake31.

 

Let's begin with your question number 1. To ensure that your tax forms will be filed properly, I recommend processing them before converting your company file to an LLC. This way, you can start fresh records for the next fiscal year. 

 

After that, you'll need to change your company information in your QuickBooks so your tax forms will be updated if you want to use the same file for the next year. Your payroll and other transactions will be recorded as usual. 

 

To change your information:

  1. Click on Company.
  2. Select on My Company
  3. Click on the pencil icon to edit the information.
  4. Select on Report Information.
  5. Fill in the necessary information.
  6. Click on OK

However, if you wanted to create a new company file for your LLC, you can create a new company file by copying the existing file with the same vendors, customer contact information, chart of accounts and lists. Aside from that, all the lists, transactions, templates, and preferences in the original company file are also carried over.

 

To learn more about this process, please check out to this article: Create new company with lists, templates, preferences, and accounts (empty) from an existing one.

 

When it comes to your 2nd question, you can use this article as your reference to guide you in changing your business information in QuickBooks: Update your business name and address for QuickBooks Desktop Payroll.

 

For your third question, you'll need to reach out to our Customer Care Team so they will be aware of the changes that you made. They will also help you in modifying your EIN

 

Lastly, you can transfer your payroll subscription to your new company file. To do this, you have to add the new EIN to your subscription. It'd be best to contact our support so you'll be guided accordingly.

 

Here's how you can reach them:

  1. Click on Help at the top.
  2. Press on QuickBooks Desktop Help.
  3. Hit on QuickBooks support.
  4. Choose your preferred way on how to get connected with our support.

Please keep me posted if you have any other questions, I'm always here to help. Wishing you the best. 

View solution in original post

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