Corporate Accounting Services

Business

Corporate Accounting Services

A business is broadly defined as a legal body or entity duly registered, organized, and operating for the conduct of commercial, industrial, or financial activities. Businesses may be either for- profit organizations or non-profitable ones that work to meet a social or charitable purpose or further a personal social cause. A person who carries out the business activities can be an individual or an institution such as a private firm, a partnership, a limited liability company (LLC), or a corporation. In some cases, business activities may be conducted by individuals or companies in their own right, either independently or as partners in a venture. The most important objective of any business organization is to create wealth. Business enterprises therefore seek new market opportunities, expand into other markets, acquire new customers, and generate profits.

There are many businesses in the current market and there is a huge demand for these businesses. However, not all businesses succeed for the same reasons and there are many other factors such as the type of product/service offered, location of the business, competition, and many other factors affecting the profitability of the businesses. Businesses need to maintain records relating to the daily operations of the business to ensure smooth operations and to avoid discrepancies in accounting records. An owner should be able to establish the legal structure of the business on time and submit the annual returns to enjoy tax benefits.

Businesses are generally set up as sole proprietors, general partnerships, LLCs, corporations, and registered agents. Most business owners prefer to set up a corporation because it creates a shield from personal liabilities in case someone is injured while doing the business. However, forming a corporation requires the filing of articles of organization form with the appropriate city or state departments. Once the articles of organization have been approved by the concerned authority, the corporation can proceed with the formation process. In many cases, the Articles of Organization are not submitted on time because the concerned individual is busy in other jobs and fails to submit the requisite documents before the deadline. The court may appoint a new corporation CFO who will take care of the affairs until the Articles of Organization have been submitted and approved by the concerned authority.