Puchase a business on credit

Hello and welcome to the Community @waynei-ondatacor.

Thanks for reaching out today. I'd be happy to answer any questions you may have.

In order to make sure that I'm providing the most accurate information to you, can you share a little more detail about what you want to accomplish, please?

Any additional information will be really helpful.

I'll keep an eye out for your reply so we can get your question(s) answered quickly.

Chat soon!

Hi Monica, thanks for reaching out.

I'm a member in newly formed LLC with Sub-s election for tax purposes. We acquired an existing business at no cost. The existing business has paying customers, some furniture and equipment, no other cash, assets or debt.

What entries should I make on the balance sheet in the beginning? There is no debt or liability, only equity in the LLC. The company acquired has a fairvalue based on future income from existing customers. I'm assuming there should be an entry on the Asset side and another corresponding entry on the Owner's Equity side. What entries should be made?

Thanks,

Wayne

Monica,

You may not have seen my post.  I've re-posted for you or anyone else that wants to contribute.

I'm a member in newly formed LLC with Sub-S selection for tax purposes. We acquired an existing business at no cost. The existing business has paying customers, some furniture and equipment, no other cash, assets or debt.

What entries should I make on the balance sheet in the beginning? There is no debt or liability, only equity in the LLC. The company acquired has a Fair value based on future income from existing customers. I'm assuming there should be an entry on the Asset side and another corresponding entry on the Owner's Equity side. What entries should be made?

Thanks,

Wayne

Hello there, @waynei-ondatacor. I'm here to clarify a few things for you about what entries you can make in QuickBooks Online (QBO).

We're unable to recommend what entries you can create here in QuickBooks Community. Please refer to your accountant for the best possible advice. If you don't have one, you can look for a Pro-Advisor near your area using our Find an Accountant tool.

In addition, you can also seek self-help video tutorials on our video tutorials for QuickBooks Online to help you get your QuickBooks tasks done in no time. 

Please touch base with us if there's anything else that you need help with this. We're always here to assist you further. Have a great day!