Welcome to A. Andrew Harrison CPA P.C.

Certified Public Accountant

Business formation consulting services:

The basic questions are as follows:

1-What form of entity should I choose in starting my business?

2-What are the tax consequences of my choice of entity?

The CPA firm will provide the following services:

1-Assist in choosing the right entity as follows:

a) Sole proprietor-Schedule C form 1040 (Unlimited liability) used when the following exist:

1-Single owner, adequate liability coverage, beginning years of a business

2-unconcern about raising equity

b) Single member Limited Liability Company (LLC) tax treatment similar to sole proprietor

1-Tax information reported on owner schedule C form 1040

2-Liability coverage similar to corporation

3-Not allowed in all state

c) Partnership (General)-Form 1065-Unlimited liability

1) Partnership does not pay tax. Income, deduction, gain, loss, credits flow through to partners, who then reports it on their own tax return

2) Partners basis in the partnership is adjusted by the above items

3) Cash distributions reduces partner’s basis in partnership interest

d) “C” Corporation-Form 1120

1-Disadvantages:

a) Accumulated earnings tax on retained earnings

b) Tax on dividend distributions

c) No loss pass through

2-Advantages:

a) Limited liability to shareholders

b) Deduction of shareholder fringe benefits

2-Filing the right forms with the state agencies (filing fees not included in the service fee)

Industry Look

Contact us now

718.363.9500

We study the industry for our client's so they would not have to and rate each company based on its industry.