We are a partnership business. We work together to advance our mutual interests to increase the likelihood of achieving our mission and to amplify our reach. As partners, we share equally in both responsibility and liability. Our business is owned by the Cooper family which was created under an agreement. We are all personally liable for any legal actions and debts. One of the major advantages of a partnership is the tax treatment we enjoy. Partnerships are generally not the best choice for a new business because because of all the required filings and administrative complexities. A partnership doesn't pay tax on its income but "passes through" any profits or losses to the individual partners. At tax time, the we must file a tax return, Form 1065, that reports our income and loss to the IRS. In addition, we must individually report our share of income and loss on Schedule K-1 of Form 1065.
Rosario's is a business that legally has no separate existence from me. Income and losses are taxed on my personal income tax return. It is the simplest form of business in which I can operate. A distinct disadvantage is that I remain personally liable for all the business's debts. My business reports my sole income and losses and expenses by filing a Schedule C, along with a standard Form 1040. My profits and losses are first recorded on a tax form called a Schedule C, which is filed along with my 1040. Then the "bottom-line amount" from schedule C is transferred to my personal tax return. This aspect is awesome because my business losses I suffer may offset income earned from other sources. As sole proprietor, I must also file a Schedule SE to calculate how much self-employment tax I owe. I don't need to pay unemployment tax on myself, although I must pay for any employees. Of course, I won't enjoy unemployment benefits should my business suffer. As a sole proprietor, I carry little ongoing formalities and I may mix personal and business assets freely.
A corporation is a business that declares the business as a separate, legal entity guided by a group of officers known as the board of directors. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity. In general, a corporation has all the legal rights of an individual, except for the right to vote and certain other limitations. Corporations are given the right to exist by the state that issues their charter. If you incorporate in one state to take advantage of liberal corporate laws but do business in another state, you'll have to file for "qualification" in the state in which you wish to operate the business. There's usually a fee that must be paid to do business in a state. You can incorporate a business by filing articles of incorporation with the appropriate agency in your state. Usually, only one corporation can have any given name in each state. After incorporation, stock is issued to the company's shareholders in exchange for the cash or other assets they transfer to it in return for that stock. Once a year, the shareholders elect the board of directors, who meet to discuss and guide corporate affairs anywhere from once a month to once a year. Corporations file form 1120 with the IRS and pay their own taxes. Salaries paid to shareholders who are employees of the corporation are deductible, but dividends paid to shareholders aren't deductible and therefore don't reduce the corporation's tax liability. A corporation must end it's tax year on December 31 if it derives its income primarily from personal services, such as dental care, legal counseling, business consulting, and so on provided by its shareholders.
Jimmy John's Gourmet Sandwiches
Franchising is the practice of the right to use a firm's business model and brand for a prescribed period of time. For the franchiser, the franchise is an alternative to building "chain stores" to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. Essentially, and in terms of distribution, the franchisor is a supplier who allows a franchisee to use the supplier's trademark and distribute the supplier's goods. In return, the franchisee pays the supplier a fee. Thirty three countries, including the United States and Australia, have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising
Humane Society of the United States
A nonprofit organization that serves some public purpose and therefore enjoys special treatment under the law. Nonprofit corporations, contrary to their name, can make a profit but can't be designed primarily for profit-making. Unlike a for-profit business, a nonprofit may be eligible for certain benefits, such as sales, property and income may be tax exempt at the state level. The IRS points out that while most federal tax-exempt organizations, organizing at the state level doesn't automatically grant you an exemption from federal income tax. Another major difference between a profit and nonprofit business deals with the treatment of the profits. With a for-profit business, the owners and shareholders generally receive the profits. With a nonprofit, any money that's leftover after paying bills is put back into the organization. Some types of nonprofits can receive contributions that are tax deductible to the individual who contributes to the organization. Keep in mind that nonprofits are organized to provide some benefit to the public.