Forms Of Organizations

Posted: 31-12-2005 | Views: 16 Author: Marquez Comelab There are many types of organizations. We can separate them into two major divisions: organizations existing to create profits (profit organizations. Includes business entities) and organizations that exist primarily for another purpose (non-profit organizations. E.g: charity organizations).

3 Types of Business Entities and their common characteristics:

1. Sole Proprietorships.

Sole proprietorships are business that are owned and operated by one person: the sole proprietor. The owner and the business, is then the same. For tax purposes, a sole proprietorship is not a taxable entity, and any profits earned by the business are taxed on the return of the individual. The proprietor must develop an accounting system that distinguishes between his/her personal affairs and that of the business.

2. Partnerships.

Partnerships are businesses that are owned by two or more individuals. For small partnerships, the agreement is often an oral agreement between the partners but it is highly recommended that the agreement be formalized as is done in bigger partnerships like public accounting firms and most law firms. In partnering up with individuals in the past, I felt it was important to outline the division of profits and expenses, as well as the expected responsibilities of the partners in a written agreement.

For tax purposes, partnerships are not a taxable entity, like Sole Proprietorships. The individual partners pay taxes on their share of the profits of the business. 3. Corporations.

A corporation is an entity organized under the laws of a particular state. That means that it can get into contractual agreements into its own name. They are identifiable by the existence of shares. For tax purposes, they, not their owners, are taxed.

There are advantages and disadvantages of each of the above types of business entities. And each is suited to the same business under different stages of its growth. For most, arts and entertainment independent contractors, it is probably Sole Proprietorships and Partnerships that are most common for their use.

Non-Business Entities

Most non-business entities are organized to serve the needs of various segments of society. Examples of these non-business entities are public hospitals, public schools, the police and the army. All of these entities are distinguished by the lack of an identifiable owner. Because of this and the non-profit motive to these organizations, their accounting systems are modified to fit their activities. The type of accounting they use are referred to as fund accounting.

______________

This article was written for OrangesAndLime.com, to help creative individuals — artists, musicians, designers, illustrators and entertainers — build their own freelance businesses.

Please include the paragraph below if you are republishing this article online or in print.

About The Author:

Marquez Comelab is the author of the book: The Part-Time Currency Trader . It is a guide for working men and women interested in trading currencies in the forex market. It explains everything you need to know to create your own trading methodology; touching on the basics and preparation before expanding onto the topics of market analysis, tools, trading systems, risk management strategies, discipline and psychology. See: http://marquezcomelab.com. His other articles can also be found at http://thefreedomtochoose.com; along with other helpful trading, business, investing and self-improvement articles.

Lawyer Referral Service

Accident Claims. WILLIAM J. HADDAD. Haddad, Schlack & Associates. 155 N. Michigan Ave., Suite 375, Chicago, Illinois 60601. TELEPHONE: (312) 856-1114. EDUCATION: Marquette University, B.S., 1968; DePaul University School of Law. ... TO BAR: State of Illinois, 1973; U.S. Supreme Court ... BAR ASSOCIATIONS: Muslim American Bar; Chicago Bar Association, Illinois Bar Association ...
More...

THE 1987 CONSTITUTION OF THE REPUBLIC OF THE PHILIPPINES

... Lawyer/ Law Firm directory /Solicitor ... serving, Recovery.Lawyer (Directory) Services Provided ... organization of both Houses, pass the organic acts for the autonomous regions in Muslim ...
More...

MCRC - Muslim Civil Rights Center

Civil Rights Reviews. Resources
More...

South Asian Women Help Line Direcotry

... especially a doctor (a gynaecologist, e.g.) or a lawyer ... US - Illinois. Apna Ghar, Chicago: (773) 334-4663 Email ... Samiti: (718)-689-0017. Muslim Women's Committee: (212)-316-6446 ...
More...

Miss & Mrs. NRI GLOBAL PAGEANT 2005 - BharatStars.com

... Computer Science from University of Illinois, Chicago. Nikhat has done ... of abuse. I-NRI Organization is all set to present ... for Comedy in the Muslim World => Vegas Baby ...
More...

Muslim 'charities' in Chicago , the IAP & Quranic Literacy Institute must pay parents of terrorist victim $156 ml ...

... on the Illinois/Chicago Muslim community the ... of Greater Chicago (CIO), an umbrella organization representing over ... Intellectual Property lawyer with two prominent Chicago law firms ...
More...

The Blog of The Legendary ADTC: Independence

... car lemon law. find a lawyer. accident lawyer ... gerber knife. peoria illinois. helen georgia. tennis instruction ... baby clothes. chicago state university. real estate cleveland ohio ...
More...

MADE IN THE U.S.A

... from Chicago Abu ... Illinois-based Benevolence International Foundation. With offices in nine countries and a budget last year of $3.4 million, Benevolence is one of the nation's largest Muslim ...
More...

October 1995 (AR60)

Finally, the Truth about the Worldwide Church of God and Herbert W. Armstrong. Links to other helpful documents and sites. Personal Experiences and Commentary on the Cult. ... Greg Albrecht, business manager-lawyer Bernard Schnippert, church administrator ... influence in the new Tkach organization. ... Foundation (533 Diversey Parkway, Chicago, IL 60614, tel ...
More...

The Study of Indian Diaspora

The Study of Indian Diaspora. A Multidisciplinary Agenda. N.Jayaram. Department of Sociology. Bangalore University. Bangalore - 560056. 1998 ... governing family and kinship organization, and food habits, and ... persistence. Prospect Heights, Illinois: Waveland Press. ... the human community. Chicago: University of Chicago Press. ...
More...