QBO Account and Settings>Company>Company type>Tax form

DRAccounting · ‎November 04, 2020

I'm trying to choose the correct Tax form for a new client. The client is a single-member LLC that has elected Subchapter S as a tax designation with the IRS. I KNOW the correct IRS form is the 1120S. I SUSPECT the correct Tax form choice in QBO is the line that says "Small business corporation, two or more owners (Form 1120S)". The problem is the explanation includes the words, "corporation" and "two or more owners" neither of which fit my new client. Is the wording just confusing in QBO (not the first time!)? Or, should I choose the "Limited Liability" option?

Thanks!

Rustler · ‎November 04, 2020

It is just the uninformed words spewed out by the writers

form 1120S is the correct form for a chapter S election

View solution in original post

Jen_D · ‎November 04, 2020

Thanks for visiting our forum, @DRAccounting,

You can select the form number that is required for the client's business type. We use the description to help users identify which form fits their industry, but it doesn't change how the form works. Therefore, if the client is required for Form 1120S, select it from the option, otherwise, use Not sure/Other/None.

Regardless of the name, the Tax Form selections under the Company tab is mainly used to generate Industry specific reports and forms in QBO. By choosing one of the forms, QuickBooks will customize everything for that industry.

I'll be adding this related article about the Company setup: Edit company settings in QuickBooks Online.

Feel free to come back anytime for other QuickBooks concerns. I'll be right here to help you. Have a wonderful day!

View solution in original post

Rustler · ‎November 04, 2020

It is just the uninformed words spewed out by the writers

form 1120S is the correct form for a chapter S election

Jen_D · ‎November 04, 2020

Thanks for visiting our forum, @DRAccounting,

You can select the form number that is required for the client's business type. We use the description to help users identify which form fits their industry, but it doesn't change how the form works. Therefore, if the client is required for Form 1120S, select it from the option, otherwise, use Not sure/Other/None.

Regardless of the name, the Tax Form selections under the Company tab is mainly used to generate Industry specific reports and forms in QBO. By choosing one of the forms, QuickBooks will customize everything for that industry.

I'll be adding this related article about the Company setup: Edit company settings in QuickBooks Online.

Feel free to come back anytime for other QuickBooks concerns. I'll be right here to help you. Have a wonderful day!

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QBO Account and Settings>Company>Company type>Tax form