There are several legal alternatives for organizing and maintaining a business, including sole proprietorships, partnerships, corporations, LLCs, LLPs, etc. For hundreds of years, the corporation has been the main type of entity formed to raise substantial capital to operate a business. However, for decades the corporate business form has been commonly used for small businesses also. There are a number of advantages to using the corporate format, which range from limited liability (if the corporation is properly run, there is no liability by the owners for the debts of the corporation), to spreading taxes, to the transferability of ownership. The legal requirements can be numerous, and your accounting system must be in accordance with all requirements. For example, a corporation may be taxed as a partnership or as a corporation. If the choice is to be a Subchapter S corporation, income passes through to the shareholders. Otherwise, the corporation will be taxed on its income as a legal entity.

If you presently have a corporation, we can guide you in maintaining the necessary records for a corporation. If you decide, with the assistance of an attorney and us as your CPA, that it is in your interests to have a corporation, we can set up accounting systems for the corporation.