C Corp, S Corp, and LLC

There are many pros and cons to a C Corporation, S Corporation, and Limited Liabilities Company. However it is essential to analyze your company before you decide which category you want. A C corporation is regarded as an individual entity, which means there will be less liability on the owners because they will be shareholders. Thus, if the company is sued the owners will only be sued for their investment in the company. However, as a corporation, they are subject to double taxation, once at a corporate level and another when they pay shareholders their dividends. If I were to start an S corp, I should expect higher expenses to my accountant and more responsibility on tax returns. S corporation tax returns are more costly to prepare because of its complexity and length. Also an S corporation is typically required to submit balance sheets as part of its tax return. On the other hand, if my business makes a substantial profit, an S corp can save thousands of dollars per year in taxes. Pro's of a limited liability company include avoiding double taxation and the manager typically is highly rewarded for a profitable company. The downside of an LLC is that they are not well understood, so not many people invest in them. 

Enron's demise on account of accounting

In any business it is essential to be honest with financial revenue. If the financial statements are inaccurate, accounting fraud has taken place. This is what occurred in Enron's case, when their complex business model and unethical actions resulted in misrepresented earnings and a false balance sheet to illegally depict a large revenue. At the time, Arthur Andersen, a well respected accounting firm was in charge of Enron's financial sheets and knowingly went through with illegal accounting practices. When Arthur Anderson was being questioned for fraud, they destroyed all audit material.

http://www.time.com/time/business/article/0,8599,193520,00.html

Student accountant

Hello my name is Robby Bamberger and I am a student Nicolet High School in Glendale, Wisconsin. I look forward to learning the in's and out's of accounting. My passion is golf. See you soon