Business Interviews

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Business Interview


What is an ‘S’ Corporation?
An ‘S’ corporation is a regular corporation that has elected an ‘S Corporation’ tax status. It lets you enjoy the limited liability of a corporate shareholder but pay income taxes on the same basis as a sole proprietorship. In a regular corporation the company itself would be taxed on business profits. The S corporation it does not pay any income taxes. All business profits ‘pass through’ to the owners who report them on their personal income tax returns.

While doing your job, what types of regulations and procedures need to be followed?
There are many government-imposed regulations that need to be followed in the financial reporting. General Accepted Accounting Principles, SEC, and IRS are just a few that are in practice everyday. Financial reporting is the process of communicating financial accounting information about a company to external users. Companies present at least three major financial statements the balance statement, income statement, and a statement of cash flows. General Accepted Accounting Principles (GAAP) are the guidelines procedures, and practices that a company is required to use in recording and reporting the accounting information in its audited financial statements. GAAP define accepted accounting practices at a particular time and provide a standard by which to report financial results. They are like the laws and are the rules that must be followed in financial reporting.
The securities and exchange commission (SEC) have the legal authority to prescribe accounting principles reporting practices for all companies issuing publicly traded securities. The SEC requires each company offering securities for sale to the public in the primary and secondary markets to file a registration statement and to provide each investor with a proxy statement prior to each stockholder meeting. Among the most common required reports are the forms 10-K an a...