To set up multiple businesses in QuickBooks, what should you do for each company filing a separate tax return?

To set up multiple businesses in QuickBooks, the best approach is to use the Advanced Setup option to go through the EasyStep interview for each company. This process is designed to help you accurately configure each business's accounting needs as they will be filing separate tax returns. The EasyStep interview guides you through entering essential information specific to each business, such as business type, contact details, and financial preferences.

When using this approach, you can tailor the settings and charts of accounts to match the unique requirements of each individual business. This is particularly important for businesses that have different financial activities and regulatory obligations, ensuring compliance with tax regulations while maintaining clear and organized financial records for each entity.

While purchasing separate QuickBooks licenses for each company may seem logical, it is generally not necessary, and managing multiple companies under one license can often be more cost-effective and practical. Using Advanced Setup is specifically designed to simplify the process of managing multiple businesses, making it the preferred choice.