Q: I have a short-term (daily) rental and have just set up an LLC (formerly a sole proprietorship). I accepted down payments in the old company for rentals that will have a balance due towards the new LLC. Hotel tax is not paid until the full amount is collected so I need to record the entire amount in new LLC to reflect correct Hotel tax due?
A: Enter a journal entry for your new LLC to take over all of the assets and liabilities of your old sole proprietorship.
If you are only opening a second QuickBooks file – then take the Trial Balance from the old company and enter it as a Journal Entry.
You should separate the income amount and the sales tax amount, as you only pay sales tax on the amount you have received.