There is a new set of Accounting Standards that will impact the financial statements of most businesses as early as 2019.FASB ASC 842 will now require private and publicly traded companies to include lease obligations on their Balance Sheets.Publiclycompanies will have to comply by 2019 but private companies have until the fiscal year of 2020 to report the new standard.Lease Administration Software is even available for those companies that want to adopt FASB 842 early.
FASB which stands for Financial Accounting Standard Board which is an independent private not for profit organization and has the authority to establish and interpret generally accepted accounting principles (GAAP).
Their are many things to consider when you’re starting a business such as insurance, rent, advertising, payroll and much more. I think that one of the most important decisions to make when starting a business is what type of entity should it be. By that I mean will it be a partnership, sole proprietorship, Corporation or LLC (Limited Liability Company).
Over the past several years I have seen many businesses form a Limited Liability Company over a Corporation. The LLC has gotten to be a pretty popular way of doing business. According to Wikipedia a Limited Liability Company is a hybrid business entity that has certain characteristics of a corporation, partnership, or even sole proprietorship (if it has only one owner.) But before you run out and start your business and form an LLC let’s compare it to the S Corp to see which one is right for you.