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Level 2

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

I converted my S corp to an LLC (single membership) 12/1/18 (no changes except for name/entity change) and not sure how to handle entries in payroll (I have one employee) and journal entries. Do I just change my name to LLC and start new entries on the day I changed to an LLC? I need help please as I am confusing myself and QBs tollfree number as well. No one seems to understand what I am asking. I do not want to wipe out my YTD info as a C corp in the process.  Thank you. 

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Best answer December 28, 2018

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QuickBooks Team

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

Hi there, @Robin4649.

 

Thanks for joining us here in the Community. Allow me to provide some information about the transition of your payroll and entries from S Corp to LLC in QuickBooks Desktop.

 

You'll need to change your company information in your QuickBooks so your tax forms will be updated. 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. 

 

You can also visit this article for more information about changing your business entity in QuickBooks Desktop for your future reference: About changing your business entity.

 

If you need additional assistance about this matter, feel free to reach out to our Customer Care Team so you'll be guided all throughout the process.

 

To reach them: 

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact
  2. Choose QuickBooks Desktop.
  3. Click the issue or topic.
  4. On the right side, click the Green Phone button to see the support number.

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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Highlighted
QuickBooks Team

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

Hi there, @Robin4649.

 

Thanks for joining us here in the Community. Allow me to provide some information about the transition of your payroll and entries from S Corp to LLC in QuickBooks Desktop.

 

You'll need to change your company information in your QuickBooks so your tax forms will be updated. 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. 

 

You can also visit this article for more information about changing your business entity in QuickBooks Desktop for your future reference: About changing your business entity.

 

If you need additional assistance about this matter, feel free to reach out to our Customer Care Team so you'll be guided all throughout the process.

 

To reach them: 

  1. In your browser, navigate to https://help.quickbooks.intuit.com/en_US/contact
  2. Choose QuickBooks Desktop.
  3. Click the issue or topic.
  4. On the right side, click the Green Phone button to see the support number.

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

Highlighted
Level 2

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

BettyJaneB, thank you for the information. When I change my info under Information, the Income Tax form used will switch from Form 1120s to form1040. When I select that, a msg pops up saying the tax settings will now be invalid and deleted in all accounts. That worried me and I canceled it because I have not done my W2s and YTD forms for the S corp yet. Will my old information/reports still be there for reference when I had the S corp or do I lose all of that data? Also, do I need to do my YTD reports/W2s for the S corp  before changing my info to form 1040 for the LLC status?  Thank you (again).  Robin

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Level 10

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate


@Robin4649 wrote:

I converted my S corp to an LLC (single membership) 12/1/18 


I don't think the word converted is right. From a legal point of view the LLC bought the assets of the corp, which ceased to exist. So really you should start a new set of books IMO.   From a payroll point of view if control of the entities remains the same, then the rules of succession are used, where the YTD history of each employee carries over, just so as to determine the cap for SS and FUTA, and maybe the state unemployment rate,  even with a new FEIN

See attached Intuit form for just such a case.  I don't know why the Intuit article says they can't do this.  It says "Intuit Online Payroll does not support wage carryover".  Maybe the attached is for QBO Payroll, not Intuit Online Payroll.

It would have been easier to make the change on 1/1. Maybe you still can as then the issue of YTD payroll is irrelevant

 

Highlighted
Level 2

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

Thank you so much. This was very helpful!

Highlighted
Level 2

How to transition payroll and entries from S Corp to LLC? I converted to an LLC 12/1/18. Should I just purchase a new QBs software with payroll and keep old comp (S corp) and new comp. (LLC) seperate

Thank you so much!

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