Sole proprietor to Incorporation

[Tri-Valley Hose]

Hi.....I'm changing company format, I've set up a seperate checking account and have a new employer ID, but not sure if I need to set up a new company or just change company information ?

Thanks, Dave

[Lorin Browning]

You could keep the same company by making appropriate equity account changes. How to do that is more of an accounting question than a Peachtree question. Check out any basic accounting book on equity accounts for sole proprietors and for corporations.

[Tri-Valley Hose]

Thanks Lorin....

Haven't had a chance to check into that yet , but I do appreciate the response.

Dave

[joelpps]

I would be very carefull before using the same company. A corp is a different legal entity. You must tranfer assets and liabilities to the corp and set up either receivables or payable to shareholders, or additional paid in capital.

Even if you don;t use a CPA for you normal activities, I would reccommed one for this transaction. There are significant tax implications in each senario and you only have one shot at maximizing any benefits or accruing tax obligations in doing it wrong.

[Tri-Valley Hose]

Hi Joel...

My CPA is working with me now, she also advised seperate company for the same reasons you mentioned.
Tnx for your input.

Regards,

Dave