GAAP – for Generally Accepted Accounting Principles, the rulebook for proper business accounting in the United States. The Financial Accounting Standards Board (FASB) is in charge of the rulebook. Audits, reviews and compilations • Many firms use the services of Certified Public Accountants (CPAs) to scrutinize and provide opinions on their financial statements. An audit is the most rigorous. Corporate structure – States largely set the rules and regulations for businesses that operate in their boundaries. Common forms of organizations are: • Stock Corporations (Inc.) • Limited Liability Companies (LLC) and Professional LLCs (PLLC) Taxes – Federal, State, and Local Govt all involved • Businesses are taxed on net income (profit) at the federal and state levels • S-Corp is a federal tax designation. The corporation itself is not taxed on its profits – the profits “pass through” to the stockholders and are taxed at the individual level. Briefly
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