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ACC 561 WEEK 2

You are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types.

Write a paper of no more than 1,250 words discussing your small-business idea. Include the following:

The advantages and disadvantages of the different forms of business organization, which include the following:

Sole proprietorship
Partnership
C corporation
S corporation

The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity?

The following consequences associated with each form of business organization:

Tax implications
Legal implications
Accounting implications, such as SOX, GAAP and FASB

An explanation of the unique product or service your small business provides
Your choice of business organization form for your new business
Your rationale for choosing this form of business organization
For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and disadvantages are for each.

Legal implications refers to liability and continuity of the entity in the event of death or the withdrawal of a partner,owner or shareholder. Be sure to be specific about liability issues, particularly with the partnership.

For SOX ,GAAP and FASB, what entities are required by law to comply? Are there best practices?

This will require a…...

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