Set up your business

Who owns the business?

Just me You are the only owner. Me and my spouse The two of you own it together. Me and one partner Two owners (partners or shareholders) who are not married to each other.

How is the business set up for taxes?

Sole proprietor You and the business are the same for taxes, and you file Schedule C. One-owner LLC An LLC with just you that files Schedule C because it never chose to be taxed as a corporation. S corporation The business files its own return (Form 1120-S), pays you a salary through payroll, and its profit shows up on your personal return. C corporation The business files its own return (Form 1120) and pays its own income tax.

Not sure? If the business filed Form 2553 (S corporation) or Form 8832 choosing to be a corporation, or files Form 1120-S or 1120, it is a corporation. Your IRS letters say which: the EIN letter (CP 575) or the S election acceptance (CP 261). Still not sure? If you have an LLC, pick One-owner LLC (or No corporation election); otherwise pick Sole proprietor, and ask your accountant. An LLC can switch to a corporation later in Settings; a sole proprietor that incorporates starts a new business file.

What is the business called?

Business name Also used to name your business file.

Your name

When do your books start?

Books start on The first day these books cover. Most people start on January 1. If you start mid-year, the next steps ask for totals from before that day.

Your business accounts

Add every business bank account and credit card you'll import statements for. You can add or change accounts later in Settings → Accounts.

Bank accounts

Credit cards

Company's starting balances

Was the company already running before your start date?

No, it starts now Nothing to enter here. The money that pays for the shares shows up on a statement; record it there. Yes

Before you started

Type totals for each category from your own records — a spreadsheet, last year's notes, anything. Leave a line blank if it was zero. This becomes one entry so your first year's reports are complete. It is marked as a summary from your records, not from statements.

Who owns the business?

How is the business set up for taxes?

What is the business called?

Your name

Ownership shares

Starting balances split (optional)

When do your books start?

Your business accounts

Bank accounts

Credit cards

Company's starting balances

Before you started

Income

Expenses

Paid to shareholders

Ready to create your books