Entity type
How your business is set up for tax: sole proprietor, single- or multi-member LLC, S corporation, C corporation. It decides which equity accounts and forms you get.
In Solo Superstars
Set once in the tax profile. Pass-through entities get owner draws and estimated-tax equity accounts and the Schedule C mapping; corporations get prepaid income tax and no Schedule C.
Example
Switching from sole proprietor to multi-member LLC adds 3210 Member Distributions and changes what the year-end rollup closes.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- business structure
- legal form
Related
- Tax profile — Your entity type, accounting method, home state, fiscal year and nexus states. Most tax behavior in the app keys off it.
- Schedule C — The IRS form where a sole proprietor or single-member LLC reports business profit or loss. The app maps your accounts to its lines.
- Owner-equity rollup — The year-end step that folds the year’s owner draws and estimated tax payments into Owner’s Equity so those accounts restart at zero.
- 3220 Owner Estimated Tax Payments — Quarterly estimated income tax paid from business funds on behalf of a pass-through owner. A draw, not a business expense.