AIRAWAT ...
Definition: A business owned and operated by one individual.
Compliance: Typically easier and less costly to establish compared to other structures. The owner is personally liable for all debts and obligations of the business.
Taxation: Profits are taxed as personal income of the owner.
Definition: A business owned and operated by two or more individuals.
Compliance: Partners share profits, losses, and liabilities of the business. Partnerships may require a formal agreement outlining the roles and responsibilities of each partner.
Taxation: Profits are passed through to partners and taxed as personal income.
Definition: A hybrid business structure that combines the flexibility of a partnership with the limited liability of a corporation.
Compliance: Owners are protected from personal liability for business debts and obligations. Compliance requirements vary by jurisdiction.
Taxation: Can choose to be taxed as a partnership, corporation, or sole proprietorship depending on the number of members.
Definition: A legal entity separate from its owners (shareholders) with its own rights and liabilities.
Compliance: Requires formal incorporation through state authorities, with specific governance and reporting requirements. Shareholders have limited liability.
Taxation: Profits are taxed at the corporate level, and dividends distributed to shareholders are taxed as personal income.
Definition: A corporation formed for purposes other than generating profit, such as charitable, educational, or religious activities.
Compliance: Subject to specific regulations governing nonprofit organizations, including tax-exempt status and restrictions on activities.
Taxation: May be exempt from federal and state income taxes if they meet certain criteria.
Definition: A business owned and operated by its members for their mutual benefit.
Compliance: Members typically have equal voting rights and share in the profits and losses of the cooperative.
Taxation: Profits are passed through to members and taxed as personal income.
