Restaurant Expansion S Corp Bookkeeping Question

by Nancy
(Florida)

Restaurant S Corp

Restaurant S Corp

We are in the process of opening another restaurant dba under the same S corp. We will keep a seperate set of books.

How do I account for all the dollars that the original restaurant spent on renovations and start up costs.

Also, do we need two tax returns?

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Jan 20, 2024
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starstarstarstarstar 		Managing Finances for Multiple Restaurants
by: BB

Opening a new restaurant under the same S corp involves careful accounting and tax considerations.

Recording Renovations and Start-Up Costs:

Create a new set of books for the new restaurant to keep the financials separate.
Record the dollars spent on renovations and start-up costs as initial investments or capital expenditures.
Utilize appropriate accounts for expenses like renovation costs, equipment purchases, and other start-up expenditures.
Accurate tracking ensures a clear financial picture for each restaurant.
Tax Considerations:

While the restaurants operate under the same S corp, maintaining separate books is a smart practice.
Consult with your accountant to ensure compliance with tax regulations.
In many cases, a single S corp tax return can encompass multiple business activities. However, specifics can vary based on the complexity of operations.
Your accountant can guide you on the best approach, whether it involves one consolidated tax return or separate returns for each business.
Seek Professional Advice:

Given the intricacies of tax laws and business structures, it's advisable to consult with a tax professional or accountant.

They can provide personalized guidance based on the unique circumstances of your restaurants.
Clear communication with your accountant ensures that your financial and tax strategies align with legal requirements.

Remember, tailored advice from a professional familiar with your business context is crucial for making informed decisions.

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S Corp Single Owner and Taxes

by Eve
(Middletwown, NY, USA)

Hi. I have a client who recently changed from a DBA to an S-Corp at the suggestion of his accountant. Shouldn't he be paying quarterly income taxes, or can he pay at the end of the year once he files the s-Corp for the first time? He is taking checks each month in the amount of 3K to 4K.

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Jan 20, 2024
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starstarstarstarstar 		Quarterly Taxes for S Corps
by: BB

Your client made a smart move by changing to an S Corp! Now, since he's running this type of business, it's generally a good idea to pay income taxes every three months. This helps to avoid a big payment at the end of the year.

Think of it like this: It's similar to putting money aside regularly instead of saving up a big amount all at once. This way, when tax time comes, he's more prepared and won't feel the financial pinch.

So, paying quarterly is like spreading out the payments, making things smoother for him and avoiding a big surprise at tax time!

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Sole Prop to S Corp

I own a restaurant as a sole prop, but I am changing over to a S corp. How do I post the transfer of the equipment to the S Corp. journal?

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Jan 20, 2024
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starstarstarstarstar 		How to Record Equipment Transfer
by: BB

Congratulations on the change to an S Corp! When transferring equipment from your sole proprietorship to the S Corp, think of it like moving items from one room to another.

In your S Corp journal, you'll want to record this transfer. It's like making a note that the equipment, like kitchen tools or tables, is now part of the S Corp's possessions.

Picture it as updating your list of things in the new room so everyone knows what's there. This way, your S Corp's records are clear about the equipment it owns.

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