The concept is sound; however, the execution is far from trivial.<p>GAAP (<a href="http://en.wikipedia.org/wiki/GAAP" rel="nofollow">http://en.wikipedia.org/wiki/GAAP</a>) and IFRS (<a href="http://en.wikipedia.org/wiki/International_Financial_Reporting_Standards" rel="nofollow">http://en.wikipedia.org/wiki/International_Financial_Reporti...</a>) are two great examples of accounting standards which approach regulation from two very different perspectives. I'd be interested if someone has info comparing administrative costs for businesses operating under each regime.<p>Regarding the tax code, my opinion is that all corporate income tax should be eliminated in favor of steeper progressive tax rates for individual income taxes. Effectively eliminating this burden from corporations and shifting it to the wealthiest who can afford the administrative costs, while also having a neutral effect on government revenues.<p>By its nature, capitalism demands regulations to inspire confidence in investors. So don't fool yourself into believing "all regulation is bad." The question remains, "what is the most effective &#38; efficient means of regulation?"<p>Finally, here's some advice, an LLC is generally the most effective form for a small business to take. When you get to the point where <i>additional</i> equity must be issued or raised, you might then consider the advantages of C or S corporation.