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FrankyTim
January 17, 2025
Question

Company going from Sole Prop in 2024 to S Corp Moving forward... When should we change company info in QBO?

  • January 17, 2025
  • 1 reply
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Hello, from 1984 to 2024, the company has been a Sole Prop... As of Jan 1st 2025, it is now a S Corp.
 
Considering we just filed our eFile 1099s for 2024 (still under the sole prop)... when would be a good time to change the company info to the S Corp it is now?
 
We are nervous that since we just did the eFile and we change the company info today... that it could mess with the eFile and essentially file it under the new S Corp which would cause issues. 
 
Thanks in advance

    1 reply

    FishingForAnswers
    FishingForAnswers
    January 17, 2025

    @FrankyTim  The issue is companies don't really 'change type', generally speaking.

     

    What really happens is that you close one business and open an identical one.

     

    That is to say, your new S-Corp is not your sole proprietorship; it's a distinct entity from your sole proprietorship and you'll need to start a new QBO account for it, whatever that entails.

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