New company with four LLCs, do I set each up as a different class?

Hello, @delmarbookkeepin.

Each business entity should have one company file or account in QuickBooks Online for tax reporting purposes. Combining multiple company files into one account may cause mixed transactions or taxes when reporting to the IRS.

If your reporting taxes to one entity for these four LLCs, then you can use one account for them and set up classes for each LLC. Please know that this feature is only available for QuickBooks Online Plus and Advanced users.

Also, I encourage working with a professional accountant to help manage your account accordingly.

Click the Reply button if you have any other questions about setting up your account. I'm always here to help. Have a good day!

I agree. If there is absolutely no difference in members and % ownership of each of the four LLC entities you can get away with one company file and use classes. But this is still not ideal since each LLC will have its own tax ID. You will have to create 4 K-1s for each member and everything passes through to each individual but if you need to use classes for another reason, such as each LLC owns multiple properties, then you really should have a single company file for each one. 

Good news is an Accountant version, QBOA, is free to sign up for and you can better manage four separate companies from within that umbrella, even taking advantage of not only training and testing but discounts as well

@delmarbookkeepin 

As another option, consider using QB Desktop to manage 4 books with a single one-time license. You may deploy a private cloud solution, should you need to access data file by internet connection. 

But if you prefer using QB Online,  make sure to click the Buy button to get the discounted price for up to 6 months. If you purchase from the trial account, you have to pay the regular price.

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Just my 2 cents

@john-pero 

@delmarbookkeepin 

But this is still not ideal since each LLC will have its own tax ID. You will have to create 4 K-1s for each member and everything passes through to each individual

A sole proprietor LLC does not issue a form K-1, that is only for multi-member LLC's, and they file as a partnership on form 1065 which generates the K-1. A sole proprietor LLC does not have to have an FEIN, all sole proprietor LLC's can file under the owner ssan, but each LLC does have to file its own schedule C.

And for that reason, each LLC should be its own business accounting file.  

An LLC is a State legal protection that separates your business from your personal, and in the event of a law suit against your business, the court can not touch your personal assets in a judgement.

Mixing personal and business  and/or mixing different company finances will void that registration in a court of law.

If the one LLC, owned several properties, and the properties were not registered as an LLC individually then one business file with classes will work

Thanks so much for the input.  I need to ask my client more questions about how they are set up.

I really appreciate your feedback.

Lisa

Good afternoon, 

I have read through all of the responses, yet my question has not been completely answered.  I have one "main" company.  It currently has 3 LLC's.  I have been asked to add another LLC, as a new Entity.  The new entity has it's own tax ID,   

My question, what are the steps to setting up a new LLC/entity under the main Company?   I have not been with this company for very long, and the person that I replaced, is unreachable. 

I can help provide the steps on how to set up the new LLC under the main company, kbrew0618.

In QuickBooks Online, you need to have one subscription for each entity (tax ID).

For the new LLC, you can use the email and user ID of the main company during the sign-up process. Doing this makes you easier to switch between these two companies inside QuickBooks.

Let me show you how:

1. Go to this link: https://quickbooks.intuit.com/pricing/ to select a product for the new subscription.
2. Once you choose your plan, you'll be routed to the Create an Intuit account page.
3. Click Sign in.
4. Enter the main company's email or user ID and password. It won't route you to the main company. You're only using the same login credentials.
5. Click Sign in with email.
   
6. Enter your payment information, then Get Started.

Once you're inside the new LLC, you can switch to the main company quickly. Here's how:

1. Go to Settings ⚙️.
2. Under Profile, click Switch Company.
   
3. From the list, select the company you want to switch to.

I've added this link to help you navigate with the new account: Getting Started With QuickBooks Online.

You can also refer to the Sign in to multiple QuickBooks Online companies with one user ID to learn more about this feature.

Don't hesitate to contact me if there's anything else I can help you with QuickBooks. Just tag my name, and I'll get back to provide the information you need.

Hello,

I am currently using Quickbooks DESKTOP, Premier Contractors Edition 2019.  We have our "main" company and 3 Entities.  I have been asked to set up a 4th Entity.  The new entity has its own Tax ID.  I previously asked this question, and was given a response for the On line version.   I don't believe that the On line version and the Desktop version are handled the same.  

I don't quite understand when I am instructed to set up each entity as a separate "class".  What is the difference between a "class" and a "company"

Also, responding from your previous email, it was stated that I could use the same email and user ID of the main company during the sign-up process.   I have not been with this company for very long, so the email and user ID is different for the Main Company.  The person before me set the company up.   Is this going to present a problem?

To reiterate, I am using the Desk top version, Not the On Line version.  

Yes, you can create a new company with a different EIN, @kbrew0618,

When creating a new company file in QuickBooks Desktop, you have two setup options. You can use the Express Start way if you want to get started right away. You'll only need to enter your business name, industry, and business type to create your company file. 

Here's what you'll need to do:

1. In the No Company Open window, choose to Create a new company.
2. Hit the Express Start button.
3. Fill in the necessary information.
4. Tap Create company.
5. Follow the on-screen instructions to finish the setup.

However, if the issue persists, try to fill out the other information. You can take a look at this article for more information: Create a QuickBooks Desktop company file. 

The purpose of the email address and user ID is for the admin user. I suggest changing the information in the camps.intuit.com to set up the admin.

You may check these articles for more information about changing the information on the CAMPS account:

• Create a

There are two issues being combined here.  Someone is asking you to put the new company (with the new EIN) inside the existing company as a class.  It is NOT the same as setting up a new company.  Read through the string and see that it was answered that if there are taxes to be paid under the new entity, you should set it up as a separate company under the same "subscription".  If you do not, then you can set it up inside the existing company and add to the classes.  If you do that though, your expenses, etc. will be combined and you can only know what is just for that new company by running the financial reports by class.  Nothing will separate on the balance sheet.

@COBAController if you combined multiple entities (however separated by class) under one company file...in an effort to "ease the pains" of logging in and out for data entry and gathering consilodated reports, there is no work around to pull the ap summary or balance sheet by class right? Pulling by class. Totals don't match. Is it better to leave entities as their own company file and of so....what solutions are there to streamline processes as you add entities