Set Up New LLC for Short Term Rental in QuickBooks

QuickBooks Cash Flow Reports for Your Business

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.

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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