Accounting Standards Codification 272 (ASC 272) was released to address the more specific topic of limited liability entities, in which the owners liability for any potential lawsuits or debts is limited to what the assets in which the business owns. The most common types of limited liability entities are the corporation, the S-Corp, and the LLC. Limited liability entities are very popular, especially the LLC, as they do not require very much in the way of paperwork to setup or fees to incorporate.
For more in depth information on this and other FASB ASC topics, check out the following books.
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