The Complete Guide to Accounting for US LLCs and C-Corporations

The Complete Guide to Accounting for US LLCs and C-Corporations

Running a company in the United States means more than just incorporating it means staying compliant with accounting and tax laws that can differ by entity and state. Whether you’ve formed a Limited Liability Company (LLC) or a C-Corporation (C-Corp), accurate accounting is essential for growth, compliance, and investor confidence.

LLC vs C-Corporation: Accounting Differences

LLC Accounting:

  •  Income passes directly to members (owners) avoiding double taxation
  •  Simpler reporting: most LLCs file Form 1065 and issue K-1s to members.

C-Corporation Accounting:

  • Treated as a separate tax entity.
  • Pays 21% federal corporate tax, then shareholders pay taxes on dividends.
  • Files Form 1120 annually.

Core Accounting Responsibilities

1. Bookkeeping: Maintain a clear record of income and expenses using tools like QuickBooks Online or Xero.

2. Bank Reconciliation: Match every transaction to your bank statements.

3. Sales Tax Compliance: Track and remit sales tax in states where you have nexus (physical or economic).

4. Financial Statements: Prepare Profit & Loss, Balance Sheet, and Cash Flow reports.

Why It Matters

Accurate accounting helps you:

  • File tax returns correctly
  • Maintain investor trust
  • Avoid IRS penalties
  • Track profitability in real time

Final Thoughts

Strong accounting isn’t just a regulatory requirement it’s your growth compass. At Startitup Global, we provide full accounting and compliance support for US LLCs and C-Corps from bookkeeping to annual filings helping international founders stay compliant and confident.

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