Final answer:
The two methods of setting up a new company in QuickBooks are the Express Start, which is a quick setup option, and the Detailed Start, which provides a more tailored setup for the business. Choosing the right business structure is crucial for legal and tax purposes.
Step-by-step explanation:
When setting up a new company in QuickBooks, you can use one of two methods to get started. The first method is the Express Start, which is a quick and easy setup process where you simply enter your company name, industry, business type, and tax ID before you start using QuickBooks. The second method is the Detailed Start, which is a more comprehensive process that asks for additional information such as your company's start date, fiscal year end, and chart of accounts. This method is usually preferred if you need a more customized setup for your business.
It's important to choose the business structure wisely, as it can affect your legal liability and tax responsibilities. The most common business structures are sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company (LLC). Each structure has its own implications for taxes, personal liability, and business operations, and the larger the profit of your business, the more taxes you will be responsible for.