Robert Burke is a senior tax accountant at Wall, Einhorn & Chernitzer, P.C. who provides tax advice to a variety of clients. He graduated from Christopher Newport University with a Bachelor's degree in Business Administration and earned a Master's degree in Accounting from Old Dominion University.

1. TRUST ∙ TALENT ∙ TEAMWORK
About Your Presenter
rburke@wec-cpa.com
Robert Burke, MSA, CPA – Senior Tax Accountant
Robert Burke joined Wall, Einhorn & Chernitzer, P.C. in 2013. Robert provides
tax advice and planning for a wide range of entities in various industries
including manufacturing, retail, government contracting, real estate and
high net worth individuals.
Robert graduated from Christopher Newport University where he earned a
Bachelor of Science in Business Administration, with a concentration in
Finance. He earned his Master of Science in Accounting at Old Dominion
University.

2. Start-up Accounting
Robert Burke, CPA
Senior Tax Accountant

3. Who cares?
Accounting is nerdy and boring, I am trying to run a
business.
• Over 28% of businesses declaring bankruptcy cite problems with
the financial structure of the company as their main cause of
failure.
TRUST ∙ TALENT ∙ TEAMWORK

4. Financial Statements
Period of Time
• Income Statement
• Cash Flow statement
Point in Time
• Balance Sheet
• Asset
• Liability
• Equity
TRUST ∙ TALENT ∙ TEAMWORK

5. Integrate your Accounting System
• Should be part of the Business Process
– Just like product development, marketing, etc.
• Update Daily
• Create a 12 month Budget, review and compare to
actual
• Understand your Margins
TRUST ∙ TALENT ∙ TEAMWORK

6. Hire Someone?
• Bookkeeper: Keep Records
• Accountant: More complicated financial matters
• What is a CPA?
TRUST ∙ TALENT ∙ TEAMWORK

7. Common Mistakes
1) Poor Record Keeping
2) Blending Business and Personal Finances
3) Not correctly deducting Business Expenses
4) Not using the Right Tools
TRUST ∙ TALENT ∙ TEAMWORK

8. Common Mistakes (cont.)
5) Not understanding Tax Obligations
6) Not asking for Professional Tax Help
7) Not paying Quarterly Taxes
8) Poor Funding decisions
TRUST ∙ TALENT ∙ TEAMWORK

9. Common Mistakes (cont.)
9) Wrong Legal Entity…
TRUST ∙ TALENT ∙ TEAMWORK

10. Entity Types
TRUST ∙ TALENT ∙ TEAMWORK
Sole Proprietor C Corporation S Corporation LLC
Lawsuit protection for
owners when business
is sued?
NO YES YES YES
Who is taxed on
business profits?
Owner Corporation Shareholder
Your choice - Owner or
Company
When to use? Not recommended
Own a business, to take
advantage of lower
corporate taxes
compared to individual
income taxes, publicly
traded company, to
deduct medical
expenses.
Own a business where
the owner will disburse
most of the corporate
profits to himself/herself.
To own real estate. To
hold cash for asset
protection. To own the
stock in one's
corporations.

11. Entity Types(cont.)
TRUST ∙ TALENT ∙ TEAMWORK
Sole Proprietor C Corporation S Corporation LLC
Benefits
Few - high liability
and fewer tax
deductions than
alternatives listed
here.
Only 15%
corporate tax on
the first $50,000
of income.
Save 15.3% on taxes. Pay
self a small but reasonable
salary and pay the rest as a
"distribution to
shareholders" to save the
12.4% Social Security and
2.9% Medicare for a total
savings of 15.3% on this
portion of income.
When owner (member) is sued there are
provisions in the law to protect assets held
inside of the LLC from being seized.
Taxation
As a sole
proprietorship - all
income flows through
to owner.
Corporation pays
its own taxes
after deductions.
(All "for profit"
corporations are
taxed as C
corporations by
default.)
Shareholders pay the taxes
after deductions. (Must file
an election to attain S
corporation status).
Shareholders can only be
US citizens or resident
aliens.
Your choice. Can be taxed as a sole
proprietorship, partnership, C corporation or
S corporation. By default - taxed as sole
proprietorship if only one owner, as a
partnership if two or more owners. File a tax
form to be taxed as a C corporation and an
additional form to be taxed as an S
corporation

12. Entity Types(cont.)
TRUST ∙ TALENT ∙ TEAMWORK
Sole Proprietor C Corporation S Corporation LLC
Ownership Sole proprietor Shareholder Shareholder Member
Leadership Sole proprietor
Officer/Director (can
generally be same person)
Officer/Director (can
generally be same person)
Manager/Member (can
generally be same person)
Raising Capital
Borrow money that is
typically guaranteed
personally
Sell shares of stock to
raise capital without
personal guarantee of
owners (subject to
applicable laws)
Sell shares of stock to
raise capital without
personal guarantee of
owners (subject to
applicable laws)
Sell membership interest
to raise capital without
personal guarantee of
owners (subject to
applicable laws)
Guideline Documents None Bylaws Bylaws Operating Agreement
Ownership Documents None Shares Shares
Operating agreement /
Membership Units
Double taxation
required?
NO
NO - only if dividends are
paid. Thus, pay salaries
and bonuses rather than
dividends.
NO NO
Can business deduct
salaries to owner?
NO - business and owner
are one in the same for
tax purposes.
YES YES YES