How to Change Your Business Entity in QuickBooks

You might be looking for a way to change your business entity in QuickBooks but before doing so make sure you understand the effects of changing the business entity. Changing the entity of a business can affect the tax saving, legal protections, and ownership requirements of a business as it completely change the structure of a business. In this article, we will walk you through the steps of changing the entity of a business in QuickBooks so follow the complete article until the end for detailed instructions.

Need Help Changing Business Information in QuickBooks! Call QuickBooks Customer Service Number (844)-888-4666

There are few changes in the business information those are not considered as huge changes and falls under non-entity changes like:

1. Incorrect Employer Identification Number change
2. Changing the owner of the business with the same EIN
3. Changing the name of the business

Following are the types of information change that falls under the entity change category:

1. Formation of a limited liability corporation (LLC) or becoming incorporated.
2. Partnership changing to a sole proprietor.
3. Corporation changing to another type of corporation (for example, S-Corp to C-Corp).
4. Sole proprietor changing to a partnership.
5. Partnership changing to a corporation.
6. Sole proprietorship changing to a corporation.
7. Merger and acquisition (purchase of another company).
8. Transfer of ownership with new EIN.

Important: Every type of business entity change has its own different conditions. In case if you are required to change the entity of your business then we suggest you contact QuickBooks Payroll support for help.

You will Require to Use a New EIN

1. Wages can be carried over to the new business entity using the same old EIN.
2. Wage limits are used for unemployment and social security taxes from the same old business Employer Identification Number.
3. New tax liabilities for the business can also be settled using the new EIN.

Carry Over the Wages

1. It is not possible to carry over the wages in Intuit Online Payroll.
2. If you have set up a new account to run your payroll for a new entity the new taxes will be calculated from the starting.
3. In case if you are eligible for wage carryover then you have to manually calculate your SUI and FUTA taxes.
4. The SUI and FUTA taxes are required to be filed outside the payroll system.

Hopefully the given information will help you change the entity of your business, but in case if you want to change other information of your business like the EIN, Legal Name, or the Business name then you can follow our article on How to Change Business Information in QuickBooks Online or call QuickBooks Payroll Helpline Number (844)-888-4666 for help.