cancel
Showing results for 
Search instead for 
Did you mean: 
Robin4649
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. 

Solved
Best answer December 28, 2018

Best Answers
BettyJaneB
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

7 Comments 7
BettyJaneB
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

Robin4649
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

Malcolm Ziman
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

 

Robin4649
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!

Robin4649
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!

ok75
Level 1

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

It is not my company. It is a Church and I am secretary. /Where am I clicking on company. I haven't use the QB software yet. We have not been In our church yet. "since the pandemic".

MaryLandT
Moderator

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'm here locate the company settings, ok75.

 

Before we start, make sure to log into your QuickBooks Online account as the master admin. This role is required to change the company information.

 

Once you're inside QuickBooks, here are the steps you can follow:

  1. Go to Settings ⚙ and choose Account and settings.
  2. Proceed to the Company menu.
  3. Select any item you want to update. More fields will appear when you select an area, and the question mark for each field will tell you what it’s for. See the sections below for more info on some items. 
    companyinfo.PNG companyinfo.PNG
  4. Click Save, then Done to finish.

You can also visit this link for additional information: Change your business name, contact info, or EIN in QuickBooks Online.

 

Also, these articles cover all of the setup and accounting workflows you need to know, guiding you from the initial sign up through the next financial quarter and beyond: 

 

Stay in touch with me if there's anything else I can help you with QuickBooks. I'll be right here to help you.

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up