Going Out on Your Own: Entity Types and Accounting Methods

Overview

Starting a business is tough! There are lots of decisions to be made and things to think about. You may feel like you have a great idea. You have done your marketing research, developed a prototype, and even looked at locations for your new office. Then it dawns on you.. What type of entity do I need to be? Is there really an advantage to choosing one entity type over the other? In this class, we will dig into the differences between entity types - from taxes to liability. We will also look at the advantages and disadvantages of different methods of accounting. Whether you are a small business owner looking to start something new or a practitioner looking to expand your client advisory services, this course is the one for you!

Objectives

Identify differences in how business entity types are taxed for income tax purposes

Recognize how personal financial planning for a business owner is related to financial planning for a flow-through entity business

Identify how S-Corporations are taxed for self-employment tax purposes

Recognize double-taxation and when it applies

Identify when a transaction should be recorded on the accounting records under the cash method

Recognize when income is recognized and an expense must be accrued on the accounting records under the accrual method

Identify what account should not appear on the financial records if the accrual method is being used

Highlights

Financial planning pyramid

What to consider when picking an entity

Single member LLC vs. sole proprietorship Corporations - S vs. C

Double taxation

Designed For

Small business owners, CPAs, and financial advisors who want to understand the advantages and disadvantages of different entity types and accounting methods

Prerequisites

None

Preparation

None

Notice

By registering for this program and, accordingly, receiving the eMaterials, you’re acknowledging that you understand both the copyright restrictions on your eMaterials and the CTCPA cancellation policy.

Fees

Credits

Level

Code

Vendor

Fields of Study

Leader(s):

John Kilroy, Surgent McCoy CPE, LLC

Leader Bios

John Kilroy, Surgent McCoy CPE, LLC

John Kilroy is a managing member of iValue Financial Planning LLC, located in the Philadelphia, Pennsylvania area. John engages clients in financial and tax planning, as well as preparing tax returns for individuals, corporations, partnerships, estates, and trusts. John is a CPA and a CFP® practitioner. He is a 1979 graduate of Villanova University with a BS in Accounting. John is a member of the Pennsylvania Institute of Certified Public Accountants and the Financial Planning Association (FPA). Within the FPA, John has served as a board member of the Philadelphia Tri-State chapter and on its education and finance committees. John is an adjunct faculty member for the Temple University Certificate of Financial Planning Program. He is a frequent speaker and facilitator on tax and financial planning topics. John has been quoted in the Wall Street Journal, MarketWatch.com, and USATODAY.com. He has written for the Journal of Financial Planning, and is a contributor to Retirement Weekly. John has also discussed financial and tax planning issues on various radio outlets.

Return to Top