Can I change my entity type?
No. A company’s entity type can’t be changed after the company is set up in Puzzle, either by you or by our support team.
Puzzle supports these entity types:
C-Corp
S-Corp
LLC
Partnership
Sole proprietor
Does it affect my books?
Usually not much. Your entity type only decides which equity accounts Puzzle creates for you when you set up your company. For example, an LLC gets owner’s equity accounts and a C-Corp gets stockholders’ equity accounts.
It doesn’t change how your transactions are categorized, how your financial statements are calculated, or how your integrations work.
What to do instead
If your entity type is wrong, or you’ve changed entity type since setting up Puzzle, adjust your chart of accounts so your equity section matches your business:
Go to your Chart of Accounts.
Add the equity accounts your entity type needs. See Adding an Account to the Chart of Accounts.
Rename any default equity accounts that don’t fit. See How to Change Account Names in the Chart of Accounts.
Deactivate equity accounts you won’t use. See How to Deactivate an Account in Your Chart of Accounts.
Recategorize any existing equity transactions to the right accounts. See How to Categorize Owner + Equity Transactions.
If you work with an accountant, we recommend asking them which equity accounts your business should use.
What about nonprofits?
Puzzle doesn’t have a nonprofit entity type yet. Nonprofits can use the LLC setting and add the accounts they need, such as net asset accounts, to their chart of accounts.
Still have questions?
Message us in chat with your company name and what you’re trying to set up.