Changing from non-profit to s Corp

Changing your business type can be complex and often involves legal and tax implications, Susan. I'm here to answer your question about what happens when your company is changed from a Non-profit to an S corporation.

When you change your business structure from a Non-profit to an S Corporation in QuickBooks, you may encounter a message indicating that your income tax settings are now invalid and will be deleted. This typically happens because the tax settings for non-profits differ significantly from those for S Corporations.

As for your payroll concern, once you switch to an S Corporation you'll have to ensure that your payroll settings are updated accordingly. You can consider consulting with your accountant so they can provide guidance specific to your situation for this specific change.

To help choose the right business tyoe for your business needs, you can visit this page: 9 Types of business structures: How to pick the right one for you.

Once you change your company type to S-corp, here's a great resource you can visit on how to get started: How to start an S-corp: 5-step guide and checklist.

You can ask us, Susan, if you have any other questions regarding your business type change.