Solved! Go to Solution.
Good morning, @androo.
Nice to have you here in the Community.
Community is here to simplify your accounting, there are just some limits of what we can assist with and providing advice is one of them. You can reach out to your accountant as they would have the tools that best fit your business needs. If you don’t have an accountant, QuickBooks does have Find-An-Accountant.
Some customers find this link helpful about QuickBooks Online Categories:
Should you have any further questions, feel free to comment below.
Community is designed to simplify your accounting and there to have your back, there are just some limits of what we can assist with. Providing accountant advice is one
Thanks Emily, but I'm not looking for accounting advice - I'm confident in the accounting aspect of this. It's just a question of using Quickbooks-invented categories as the previous answer pointed out.
I did read through that link before I posted this, and it contradicts the previous answer. @Rustler said to use detail type "partner distributions" but the article says this is for "partnerships only". However, I think he's right that since they're just Quickbooks-invented anyway, it shouldn't matter.
Great to have you back in the Community.
I agree that the category selected for your tax form doesn't have any major implications on the functionality of the program. However, It can change the phrasing of most reports and labels for QuickBooks Online. As suggested by my colleague above, if you're unsure which category to select for label purposes only, an accountant or tax professional will be your best bet for the correct answer to this question.
If any issues arise with the form change, I'm here to assist you anytime. Simply drop a post below.
For a LLC taxed as a S Corp: do I set up equity accounts in QB as members (LLC) or shareholders (S Corp)? There are 2 members or shareholders (50% each). I think I should set up as S Corp. Thoughts?? Also, they borrowed money to buy existing company and didn't invest any of there own money. Should I put $1 for common stock for each so it isn't $0. They both have basis now since there is a net profit.