See attached files.
Which business structure would you choose if you were to set up your own CPA practice: a partnership, proprietorship, or corporation? Why? Explain what factors affect your decision. (Ch. 7 of Advanced Accounting)
Why is it important to understand the difference between an originating temporary difference and permanent difference in a company? Explain if this concept is relevant for personal finance. (Ch. 19 of Intermediate Accounting)
Then with permanent differences, how do they affect and impact the relationship between income tax expense on the income statement and income taxes payable for the amount owed to the IRS?© BrainMass Inc. brainmass.com March 4, 2021, 9:57 pm ad1c9bdddf
1. Which business structure would you choose if you were to set up your own CPA practice: a partnership, proprietorship, or corporation? Why? Explain what factors affect your decision. (Ch. 7 of Advanced Accounting)
For a CPA practice in which I was the only owner, I would choose to become a Limited Liability Company (LLC). LLC's are relatively new business structures allowed by state statue compared to the other, more established structures.
The decision to form an LLC would be based upon the fact that, similar to a corporation, owners generally have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. Most states also permit "single member" LLCs, those having only one owner.
Otherwise: I would choose to have my practice formed under ...
A review of the various business structures for businesses. Focus on CPA businesses.