Create New Company?

So he should 'dissolve customers, inventory, customer history, etc...

What exactly do you think OP is trying to retain use of???

If OP started the new year as an Incorporated entity of his former
business tax mode he likely needs to do NOhing but continue on as he has
in the past. I'd doubt even that really maters... All we are really
talking about here are 'reports' and their scope of time to isolate the
Incorporations finances from the previous incarnation. He may of course
need to add some accounts to accommodate incorporation.

As always OP; consult your tax professional; not some guy on the net...

Tim K


"battlelance" <battlelance.DeleteThis@hotmail.com> wrote in message
news:f02d00d1c163aks3qi9ut1otfpleprhjn5@4ax.com...
 > On Wed, 14 Jan 2004 23:40:13 -0800, "kickaha(remove)"
 > <"kickaha(remove)"@workmail.com> wrote:
 >
  > >Hi, all-
  > >
  > >I just incorporated and am wondering if I need to create a new
company
  > >in QuickBooks, or can I continue using my existing company?
 >
 > I don't know how it works in your neck of the woods, but usually when
 > you go from a sole proprietorship (or partnership, whatever) to a
 > coporation, you dissolve the sole proprietorship.
 >
 > Also, an incorporated company is a seperate legal entity. Everything
 > that happened in your sole proprietorship must be kept seperate from
 > your coporation.
 >
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

I went through this a few years ago. I had employees and an EIN as a sole
prop. but the feds made me get a new one when I incorporated. I screwed up
and made one 941 deposit to the old account. I spent a year getting
threatening letters from the IRS while trying to get this fixed. It took a
day sitting in the local IRS office and insisting on an audit to finally get
it straightened out.

My bank was fussy and "recommended" that my old accounts be closed with the
balance transferred to the new corporate accounts. In general, almost
everyone I dealt with suggested a clean break between the two entities was
best and easiest approach.

If you continue with the same set of books, on day one before you ever have
a single transaction, your balance sheet will show retained earnings. You
can probably fix that and other bogus values with journal transactions. But
a year from now when you have to file your first 1120, life will be a lot
easier if you made a clean break at the start.


Mark Walsh

"Tim Kroesen" <tkroesen DeleteThis @nccw.net> wrote in message
news:100dkjj9qb4oh23@corp.supernews.com...
 > So he should 'dissolve customers, inventory, customer history, etc...
 >
 > What exactly do you think OP is trying to retain use of???
 >
 > If OP started the new year as an Incorporated entity of his former
 > business tax mode he likely needs to do NOhing but continue on as he has
 > in the past. I'd doubt even that really maters... All we are really
 > talking about here are 'reports' and their scope of time to isolate the
 > Incorporations finances from the previous incarnation. He may of course
 > need to add some accounts to accommodate incorporation.
 >
 > As always OP; consult your tax professional; not some guy on the net...
 >
 > Tim K
 >
 >
 > "battlelance" <battlelance DeleteThis @hotmail.com> wrote in message
 > news:f02d00d1c163aks3qi9ut1otfpleprhjn5@4ax.com...
  > > On Wed, 14 Jan 2004 23:40:13 -0800, "kickaha(remove)"
  > > <"kickaha(remove)"@workmail.com> wrote:
  > >
   > > >Hi, all-
   > > >
   > > >I just incorporated and am wondering if I need to create a new
 > company
   > > >in QuickBooks, or can I continue using my existing company?
  > >
  > > I don't know how it works in your neck of the woods, but usually when
  > > you go from a sole proprietorship (or partnership, whatever) to a
  > > coporation, you dissolve the sole proprietorship.
  > >
  > > Also, an incorporated company is a seperate legal entity. Everything
  > > that happened in your sole proprietorship must be kept seperate from
  > > your coporation.
  > >
  > >
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

I disagree with the first and middle parts of Tim's advice, but agree =
completely with the last part - consult a tax professional in your =
state/province/country. =20


"Tim Kroesen" <tkroesen.RemoveThis@nccw.net> wrote in message =
news:100dkjj9qb4oh23@corp.supernews.com...
 > So he should 'dissolve customers, inventory, customer history, etc...
 >=20
 > What exactly do you think OP is trying to retain use of???
 >=20
 > If OP started the new year as an Incorporated entity of his former
 > business tax mode he likely needs to do NOhing but continue on as he =
has
 > in the past. I'd doubt even that really maters... All we are really
 > talking about here are 'reports' and their scope of time to isolate =
the
 > Incorporations finances from the previous incarnation. He may of =
course
 > need to add some accounts to accommodate incorporation.
 >=20
 > As always OP; consult your tax professional; not some guy on the =
net...
 >=20
 > Tim K
 >=20
 >=20
 > "battlelance" <battlelance.RemoveThis@hotmail.com> wrote in message
 > news:f02d00d1c163aks3qi9ut1otfpleprhjn5@4ax.com...
  > > On Wed, 14 Jan 2004 23:40:13 -0800, "kickaha(remove)"
  > > <"kickaha(remove)"@workmail.com> wrote:
  > >
   > > >Hi, all-
   > > >
   > > >I just incorporated and am wondering if I need to create a new
 > company
   > > >in QuickBooks, or can I continue using my existing company?
  > >
  > > I don't know how it works in your neck of the woods, but usually =
when
  > > you go from a sole proprietorship (or partnership, whatever) to a
  > > coporation, you dissolve the sole proprietorship.
  > >
  > > Also, an incorporated company is a seperate legal entity. Everything
  > > that happened in your sole proprietorship must be kept seperate from
  > > your coporation.
  > >
  > >
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

It doesn't require QuickBooks expertise to tell you that you should create a new company file, nor does it take tax expertise to help you export/import. Whether you WANT to have 2 files is unfortunately not a good criterion for your decision - you really really really SHOULD create a new file.


"kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message news:4007540B.3000102@workmail.com...
A clean start makes sense, I'm just wondering if I requires me to set up a different company file. I tried doing this, exporting & importing my chart of accounts, but got an error message. And I'm not sure if I want to have to continually open & close companies to go back and forth.

I have a separate checking account for the "Inc". I'm wondering if I can't just add that account to my existing QB Co and go with that.

As for talking to my tax professional, he is not a QuickBooks professional and can't help me. I've tracked someone down, however, who is a tax professional and knows QB. I'll talk to her tomorrow.

kickaha

Mark Walsh wrote:

I went through this a few years ago. I had employees and an EIN as a sole
prop. but the feds made me get a new one when I incorporated. I screwed up
and made one 941 deposit to the old account. I spent a year getting
threatening letters from the IRS while trying to get this fixed. It took a
day sitting in the local IRS office and insisting on an audit to finally get
it straightened out.

My bank was fussy and "recommended" that my old accounts be closed with the
balance transferred to the new corporate accounts. In general, almost
everyone I dealt with suggested a clean break between the two entities was
best and easiest approach.

If you continue with the same set of books, on day one before you ever have
a single transaction, your balance sheet will show retained earnings. You
can probably fix that and other bogus values with journal transactions. But
a year from now when you have to file your first 1120, life will be a lot
easier if you made a clean break at the start.


Mark Walsh

"Tim Kroesen" <tkroesen.DeleteThis@nccw.net> wrote in message
news:100dkjj9qb4oh23@corp.supernews.com...

So he should 'dissolve customers, inventory, customer history, etc...

What exactly do you think OP is trying to retain use of???

If OP started the new year as an Incorporated entity of his former
business tax mode he likely needs to do NOhing but continue on as he has
in the past. I'd doubt even that really maters... All we are really
talking about here are 'reports' and their scope of time to isolate the
Incorporations finances from the previous incarnation. He may of course
need to add some accounts to accommodate incorporation.

As always OP; consult your tax professional; not some guy on the net...

Tim K


"battlelance" <battlelance.DeleteThis@hotmail.com> wrote in message
news:f02d00d1c163aks3qi9ut1otfpleprhjn5@4ax.com...

On Wed, 14 Jan 2004 23:40:13 -0800, "kickaha(remove)"
<"kickaha(remove)"@workmail.com> wrote:


Hi, all-

I just incorporated and am wondering if I need to create a new

company

in QuickBooks, or can I continue using my existing company?

I don't know how it works in your neck of the woods, but usually when
you go from a sole proprietorship (or partnership, whatever) to a
coporation, you dissolve the sole proprietorship.

Also, an incorporated company is a seperate legal entity. Everything
that happened in your sole proprietorship must be kept seperate from
your coporation.
 >> Stay informed about: Create New Company? 

I *did* as you propose years ago; never had a tax problem either. An
informed accountant *may* need data from your assumed sole
proprietorship ending date for *minor* fussing with your numbers at the
end of your first Incorporated year filings; after that you're home
free...

NO new company file needed; NO 'upgrade' to a later version needed.
There is *very* little difference between your Two business filing modes
so far as income handling goes. I'm sure your accountant will agree.
Complete continuity of your data file will *serve you* much better than
a split; not even to mention avoiding the hassles you already
experienced just a taste of...

Tim K

"_" <Spam.TakeThisOut@LocalHost.com> wrote in message
news:WnRNb.22959$1K1.270411@news20.bellglobal.com...
It doesn't require QuickBooks expertise to tell you that you should
create a new company file, nor does it take tax expertise to help you
export/import. Whether you WANT to have 2 files is unfortunately not a
good criterion for your decision - you really really really SHOULD
create a new file.


"kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
news:4007540B.3000102@workmail.com...
A clean start makes sense, I'm just wondering if I requires me to set up
a different company file. I tried doing this, exporting & importing my
chart of accounts, but got an error message. And I'm not sure if I want
to have to continually open & close companies to go back and forth.

I have a separate checking account for the "Inc". I'm wondering if I
can't just add that account to my existing QB Co and go with that.

As for talking to my tax professional, he is not a QuickBooks
professional and can't help me. I've tracked someone down, however, who
is a tax professional and knows QB. I'll talk to her tomorrow.

kickaha

Mark Walsh wrote:

I went through this a few years ago. I had employees and an EIN as a
sole
prop. but the feds made me get a new one when I incorporated. I screwed
up
and made one 941 deposit to the old account. I spent a year getting
threatening letters from the IRS while trying to get this fixed. It
took a
day sitting in the local IRS office and insisting on an audit to finally
get
it straightened out.

My bank was fussy and "recommended" that my old accounts be closed with
the
balance transferred to the new corporate accounts. In general, almost
everyone I dealt with suggested a clean break between the two entities
was
best and easiest approach.

If you continue with the same set of books, on day one before you ever
have
a single transaction, your balance sheet will show retained earnings.
You
can probably fix that and other bogus values with journal transactions.
But
a year from now when you have to file your first 1120, life will be a
lot
easier if you made a clean break at the start.


Mark Walsh

"Tim Kroesen" <tkroesen.TakeThisOut@nccw.net> wrote in message
news:100dkjj9qb4oh23@corp.supernews.com...

So he should 'dissolve customers, inventory, customer history, etc...

What exactly do you think OP is trying to retain use of???

If OP started the new year as an Incorporated entity of his former
business tax mode he likely needs to do NOhing but continue on as he has
in the past. I'd doubt even that really maters... All we are really
talking about here are 'reports' and their scope of time to isolate the
Incorporations finances from the previous incarnation. He may of course
need to add some accounts to accommodate incorporation.

As always OP; consult your tax professional; not some guy on the net...

Tim K


"battlelance" <battlelance.TakeThisOut@hotmail.com> wrote in message
news:f02d00d1c163aks3qi9ut1otfpleprhjn5@4ax.com...

On Wed, 14 Jan 2004 23:40:13 -0800, "kickaha(remove)"
<"kickaha(remove)"@workmail.com> wrote:


Hi, all-

I just incorporated and am wondering if I need to create a new

company

in QuickBooks, or can I continue using my existing company?

I don't know how it works in your neck of the woods, but usually when
you go from a sole proprietorship (or partnership, whatever) to a
coporation, you dissolve the sole proprietorship.

Also, an incorporated company is a seperate legal entity. Everything
that happened in your sole proprietorship must be kept seperate from
your coporation.
 >> Stay informed about: Create New Company? 

"Tim Kroesen" <tkroesen.RemoveThis@nccw.net> wrote in message
news:100gm8h1q0okg1a@corp.supernews.com...
> I *did* as you propose years ago; never had a tax problem either. An
> informed accountant *may* need data from your assumed sole
> proprietorship ending date for *minor* fussing with your numbers at the
> end of your first Incorporated year filings; after that you're home
> free...
>
> NO new company file needed; NO 'upgrade' to a later version needed.
> There is *very* little difference between your Two business filing modes
> so far as income handling goes. I'm sure your accountant will agree.
> Complete continuity of your data file will *serve you* much better than
> a split; not even to mention avoiding the hassles you already
> experienced just a taste of...
>
> Tim K
>


Tim,

You are flat out 100% wrong, and I'm a CPA with over 30 years of experience.
 >> Stay informed about: Create New Company? 

Yah, the more I think about it the more I think you are right. There
might be a few problems with the first year's 'Inc' return, but after
that it should be smooth sailing. I'm keeping good notes on any
discrepancies I find, so I think my CPA won't too much trouble.

As for exporting/importing, I couldn't get the import to work and don't
really have time to screw with it. I think it was a blessing in
disguise, actually, because having to switch back and forth between
companies would be a REAL PITA.

kickaha

Tim Kroesen wrote:

>I *did* as you propose years ago; never had a tax problem either. An
>informed accountant *may* need data from your assumed sole
>proprietorship ending date for *minor* fussing with your numbers at the
>end of your first Incorporated year filings; after that you're home
>free...
>
> NO new company file needed; NO 'upgrade' to a later version needed.
>There is *very* little difference between your Two business filing modes
>so far as income handling goes. I'm sure your accountant will agree.
>Complete continuity of your data file will *serve you* much better than
>a split; not even to mention avoiding the hassles you already
>experienced just a taste of...
>
>Tim K
>
>
>
 >> Stay informed about: Create New Company? 

"kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
news:400643DD.7080200@workmail.com...
 > Hi, all-
 >
 > I just incorporated and am wondering if I need to create a new company
 > in QuickBooks, or can I continue using my existing company?
 >
 > I'm having trouble exporting and importing for the new company
 > (technical difficulties), plus it seems like it would be easier to not
 > have to be switching back and forth from company to company.

You should start a new company with a new EIN. Import your lists from the
old company and setup your bank accounts again. Enter opening balances.
When you begin doing business as a new entity type, regardless of whether
the name is the same, you should have a bookkeeping system just for that
entity. I just had to do this for one of my clients who went from an LLC to
a Sole Proprietorship (1 year) to a Sub-S Corp. Three different QB files
although all contain basically the same thing. Leave the SP transactions in
the SP company and the new company will only have transactions done under
the corporate entity. If nothing else, look at it this way, its much
clearer to keep separate the business you've done as a corporation from the
business you did as a sole proprietorship. Since different tax laws govern
different entities, keeping the water mudding doesn't serve anyone well.

--
Tara<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

"kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
news:4008DCE2.9000906@workmail.com...
> Yah, the more I think about it the more I think you are right. There
> might be a few problems with the first year's 'Inc' return, but after
> that it should be smooth sailing.


Sort of like jumping off a tall building, not much fun the first 30 seconds
but trouble free there after.


I'm keeping good notes on any
> discrepancies I find, so I think my CPA won't too much trouble.
>
> As for exporting/importing, I couldn't get the import to work and don't
> really have time to screw with it. I think it was a blessing in
> disguise, actually, because having to switch back and forth between
> companies would be a REAL PITA.
>
> kickaha
>
> Tim Kroesen wrote:
>
> >I *did* as you propose years ago; never had a tax problem either. An
> >informed accountant *may* need data from your assumed sole
> >proprietorship ending date for *minor* fussing with your numbers at the
> >end of your first Incorporated year filings; after that you're home
> >free...
> >
> > NO new company file needed; NO 'upgrade' to a later version needed.
> >There is *very* little difference between your Two business filing modes
> >so far as income handling goes. I'm sure your accountant will agree.
> >Complete continuity of your data file will *serve you* much better than
> >a split; not even to mention avoiding the hassles you already
> >experienced just a taste of...
> >
> >Tim K
> >
> >
> >
>
 >> Stay informed about: Create New Company? 

Is anyone keeping score?
So far I think I've noted at least 2 professional accountants plus at =
least 2 non-accountants recommending a new file, 1 or 2 non-accountants =
recommending NO new file. And it appears that the OP is leaning towards =
the non-professional advice.


"Tee" <crapolagozhere.RemoveThis@netscape.net> wrote in message =
news:bubi3d$fv91m$1@ID-92443.news.uni-berlin.de...
 > "kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
 > news:400643DD.7080200@workmail.com...
  > > Hi, all-
  > >
  > > I just incorporated and am wondering if I need to create a new =
company
  > > in QuickBooks, or can I continue using my existing company?
  > >
  > > I'm having trouble exporting and importing for the new company
  > > (technical difficulties), plus it seems like it would be easier to =
not
  > > have to be switching back and forth from company to company.
 >=20
 > You should start a new company with a new EIN. Import your lists from =
the
 > old company and setup your bank accounts again. Enter opening =
balances.
 > When you begin doing business as a new entity type, regardless of =
whether
 > the name is the same, you should have a bookkeeping system just for =
that
 > entity. I just had to do this for one of my clients who went from an =
LLC to
 > a Sole Proprietorship (1 year) to a Sub-S Corp. Three different QB =
files
 > although all contain basically the same thing. Leave the SP =
transactions in
 > the SP company and the new company will only have transactions done =
under
 > the corporate entity. If nothing else, look at it this way, its much
 > clearer to keep separate the business you've done as a corporation =
from the
 > business you did as a sole proprietorship. Since different tax laws =
govern
 > different entities, keeping the water mudding doesn't serve anyone =
well.
 >=20
 > --=20
 > Tara
 >=20
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

I would *print* a battery of reports at your old incarnation end date
for permanent record; then in consultation with an accountant decide
what new 'accounts'. adjustments and procedures are needed for the new
Inc. Remember you can *merge* old accounts into newly created ones (or
'hide' inactive accounts) and still retain all the old data and 'drill
down' if needed with virtually no hassle...

I'd really be surprised that in such a simple business tax mode change
any experienced 'qb advisor' worth his accounting degree salt would
basically tell you to junk all your past data and start a new company
file; you didn't *start* a new company; just changed the tax filing
modes and codes (maybe even name) of your existing one.

Tim K

"kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
news:4008DCE2.9000906@workmail.com...
> Yah, the more I think about it the more I think you are right. There
> might be a few problems with the first year's 'Inc' return, but after
> that it should be smooth sailing. I'm keeping good notes on any
> discrepancies I find, so I think my CPA won't too much trouble.
>
> As for exporting/importing, I couldn't get the import to work and
don't
> really have time to screw with it. I think it was a blessing in
> disguise, actually, because having to switch back and forth between
> companies would be a REAL PITA.
>
> kickaha
>
> Tim Kroesen wrote:
>
> >I *did* as you propose years ago; never had a tax problem either.
An
> >informed accountant *may* need data from your assumed sole
> >proprietorship ending date for *minor* fussing with your numbers at
the
> >end of your first Incorporated year filings; after that you're home
> >free...
> >
> > NO new company file needed; NO 'upgrade' to a later version needed.
> >There is *very* little difference between your Two business filing
modes
> >so far as income handling goes. I'm sure your accountant will agree.
> >Complete continuity of your data file will *serve you* much better
than
> >a split; not even to mention avoiding the hassles you already
> >experienced just a taste of...
> >
> >Tim K
> >
> >
> >
>
 >> Stay informed about: Create New Company? 

I am. Why the OP didn't call his accountant up and ask for advice but rather
posted to a public forum is another mystery. Some people only hear what they
want to hear. But then it probably doesn't matter what the OP does. There
are so many screwed up business records that there really isn't time for the
IRS or the States to catch them all anyway. It's sort of like my Louis
Pastor imitation, If I get it wrong who will know the difference?





"_" <Spam DeleteThis @LocalHost.com> wrote in message
news:_UdOb.24674$1K1.442669@news20.bellglobal.com...
Is anyone keeping score?
So far I think I've noted at least 2 professional accountants plus at least
2 non-accountants recommending a new file, 1 or 2 non-accountants
recommending NO new file. And it appears that the OP is leaning towards the
non-professional advice.


"Tee" <crapolagozhere DeleteThis @netscape.net> wrote in message
news:bubi3d$fv91m$1@ID-92443.news.uni-berlin.de...
 > "kickaha(remove)" <"kickaha(remove)"@workmail.com> wrote in message
 > news:400643DD.7080200@workmail.com...
  > > Hi, all-
  > >
  > > I just incorporated and am wondering if I need to create a new company
  > > in QuickBooks, or can I continue using my existing company?
  > >
  > > I'm having trouble exporting and importing for the new company
  > > (technical difficulties), plus it seems like it would be easier to not
  > > have to be switching back and forth from company to company.
 >
 > You should start a new company with a new EIN. Import your lists from the
 > old company and setup your bank accounts again. Enter opening balances.
 > When you begin doing business as a new entity type, regardless of whether
 > the name is the same, you should have a bookkeeping system just for that
 > entity. I just had to do this for one of my clients who went from an LLC
to
 > a Sole Proprietorship (1 year) to a Sub-S Corp. Three different QB files
 > although all contain basically the same thing. Leave the SP transactions
in
 > the SP company and the new company will only have transactions done under
 > the corporate entity. If nothing else, look at it this way, its much
 > clearer to keep separate the business you've done as a corporation from
the
 > business you did as a sole proprietorship. Since different tax laws
govern
 > different entities, keeping the water mudding doesn't serve anyone well.
 >
 > --
 > Tara
 >
 ><!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company? 

"Allan Martin" <Accpac_Certified_Consultant.DeleteThis@Allan_Martin_CPA.com> wrote in
message news:qreOb.105428$G04.24384173@news4.srv.hcvlny.cv.net...
 > I am. Why the OP didn't call his accountant up and ask for advice but
rather
 > posted to a public forum is another mystery. Some people only hear what
they
 > want to hear. But then it probably doesn't matter what the OP does. There
 > are so many screwed up business records that there really isn't time for
the
 > IRS or the States to catch them all anyway. It's sort of like my Louis
 > Pastor imitation, If I get it wrong who will know the difference?

True but I wonder if the OP is considering the additional billable hours his
accountant will be charging to correct any discrepancies or move amounts
from one account to another due to not having created a new company file for
the corp. entity.

--
Tara<!-- ~MESSAGE_AFTER~ -->
 >> Stay informed about: Create New Company?