Start-ups and Accounting. The Cincinnati Business Courier says that owners of startups must be careful in their selection of accounting methods and form of business.

Planning a company's financial operations and preparing for quarterly taxes is something every entrepreneur must face when forming a company. Connie Weaver, an assistant professor of accounting in the McCombs School of Business at the University of Texas, has studied the different forms of business incorporation entrepreneurs take and their resulting tax burdens.

"If you're a manufacturer with the possibility of a lot of liability issues, you might be better off looking at the C corp," Weaver said. "Sure, you might end up paying more in taxes, but you probably have better liability limitations on your personal assets."

The trade-off is what you pay in your overall tax burden and when you pay it, versus what protections a particular form of incorporation might give your company.