The largest public accounting firms typically are structured as:
A)subchapter S corporations.
B)professional corporations.
C)limited liability partnerships.
D)limited liability corporations.

Question

Quizplus · Accepted Answer

The largest public accounting firms are typically structured as limited liability partnerships (LLPs), which provide liability protection to their partners. LLPs were specifically designed for professional service firms and are commonly used by accounting, law, and consulting firms. Unlike a corporation or a limited liability company (LLC), an LLP is taxed as a partnership, which eliminates the double taxation that can occur with a corporation. Professional corporations (PCs) may also be used by accounting firms, but they are more common in the legal profession. Subchapter S corporations and limited liability companies are less common structures for public accounting firms.

The Largest Public Accounting Firms Typically Are Structured As