Your question is too vague to answer succinctly; however, the bottom line is that it is the books, and not a common bank account, that are important here. Set up 2 companies in QB. Hopefully it will let you use the same bank account in both. If not, ask the client to open a 2nd bank account and you can transfer money from A to B online. Failing that, as money is moving across the legal boundary between two taxing entities, but staying in the same bank account, you'll need to do a journal entry reversing the expense or income out of company A and add it to company B. In this last scenario, one of the QB companies will have a bank account attached to it and the other will not. (This is basically an intercompany transfer between two legal entities as money isn't moving at the bank, only the accounting of the money is being recorded for tax purposes) Definitely do not try to use one set of books for this. Since your client is willing to take on the legal and income tax challenges, as well as pay the expenses, of having 2 business entities, having 2 sets of QBs--one for each entity--shouldn't be an issue for them. Stay in close touch with a CPA that is involved in this client's businesses and follow their guidance closely. If this is a DIY client and no CPA or attorney is involved consider not taking on such an engagement. And, most of all, be careful! If the client will not cooperate with you on these recommendations, and insists on one set of books. In that case, I would walk away from the engagement without hesitation and suggest you consider doing the same. If you can keep two sets of books straight for income tax reporting and are knowledgeable enough to keep the legal fees for each entity in the correct set of books, a CPA is involved to assist you, and the client is cooperative it might work out.
