Question

How do you set up multiple businesses in QuickBooks (assuming each business files a separate tax return)?

1) Purchase a separate QuickBooks license for each company you need to set up.
2) Use the Advanced Setup to go through the EasyStep interview for the oldest company.
3) Use the Advanced Setup to go through the EasyStep interview for each company.
4) Use the Advanced Setup to go through the EasyStep Interview for the largest company first, and then choose File > Add a separate business at the end of the interview to create a separate company file.

Answer 1

To set up multiple businesses in QuickBooks, each needing to file a separate tax return, purchase a separate QuickBooks license per business and use the Advanced Setup with the EasyStep interview for each individual company.The corrrect option is 2.

Step-by-step explanation:

When setting up multiple businesses in QuickBooks, and each business files a separate tax return, begin by purchasing a separate QuickBooks license for each company. This is essential because each business structure, whether it's a sole proprietorship, partnership, corporation, or S corporation, has unique financial records and tax responsibilities.

A Limited Liability Company (LLC) is also an option, but keep in mind that the more profit a business makes, the higher the taxes it will be liable for. For corporations, there's the potential drawback of "double taxation" where the business earnings are taxed, and the dividends paid out are taxed again at the shareholder level.

To properly set up each business in QuickBooks, use the Advanced Setup to go through the EasyStep interview for each company. It's important that each business has its own separate company file because they operate independently and require distinct financial tracking and reporting. Do not consolidate them even if one company is older or larger than the others.The corrrect option is 2.