An entity change happens when the changes on a business structure affects legal protection, tax savings and ownership requirements.
The most common business entity changes can be classified as:
This article allows you to mark the change in business entity by splitting the file based on the date the change occurred. This process allows you to have all necessary data separated by entity at the time of change. Thus, make filing taxes for each entity more manageable.
Step 1: Create a backup of the company file.
Step 2: Restore the backup on a New Folder
Step 3: Condense company file "1" to the structure ending date.
Step 4: Condense file "2"
Step 5: Update structure information in file "2"