Sole Proprietorship
This is the most common form of organization for a small business. In a
sole proprietorship, the business is owned and controlled by one individual.
Corporation
A corporation is a legal entity separate from its owners, it is owned by
one or more shareholders. The shareholders elect a board of directors who
are responsible for managing and controlling the corporation.
Organizational/Recreation Accounts, Clubs, Etc.
An account set up for informal associations or clubs. High school class
reunion accounts, sports leagues, etc.
Non-Profit/Unincorporated Association,
Religious, Charitable, Educational or Tax Exempt Organization
Non-profit organizations, which may include churches, PTAs,
homeowners and condominium owners associations.
Partnerships
A partnership is made of two or more people. There are two common
forms: General and Limited.
- General: All partners share equally in the right, and
responsibility, to manage the business, and each partner is responsible
for all the debts and obligations of the business. A general partnership
legally ends when a partner withdraws or dies.
- Limited: A limited partnership is a type of partnership in which the
limited partners share in the partnership's liability up to the amount
of their investment in the limited partnership.
Limited Liability Company (LLC)
Limited Liability Companies (LLC) are designed to combine the tax
treatment of a partnership with the limited liability characteristics of a
corporation.
