Читать книгу Financial Accounting For Dummies - Maire Loughran - Страница 60

In this chapter, I discuss the sole proprietorship and S Corporation, which are the two most popular small business entities. As an owner of the business, how you choose to operate your business directly affects how you classify transactions.

But what about partnerships and regular corporations, as both entities are discussed in your financial accounting course? Chapter 9 gives you the scoop on both.

Selecting a type of business entity is not set in stone. If you start out as a sole proprietorship and decide to incorporate, further electing S Corporation status is an easy fix. Some transitions are more difficult. However, this topic isn’t one the average small business owner encounters. As an advanced financial accounting topic, you won’t see it in your basic financial accounting course.