‡ The bylaws state the purpose of the organization and what it does.

A sole proprietorship does not have bylaws because one person owns and controls the business


‡ Sole Proprietorship ‡ A sole proprietorship is a business organization owned by one individual who controls all aspects of the organization

‡ The organization uses a flow-through tax structure with the owner's social security number to pay taxes instead of having to pay corporate taxes and individual taxes.

1. they have low start-up costs compared to other businesses and bookkeeping is simple. 2. all the liability falls on the sole proprietor, including his or her personal assets, in the event of a lawsuit

‡ . While this type of organization is less expensive to start, it is more difficult to raise capital.

‡ A partnership is an organization where two or more individuals utilize their money, talent and labor to build a company. When a partner dies, the partnership ends.

‡ All partners personally share in the profit and loss of the company. Taxes are paid by the individuals. Partners are liable in the event of lawsuit.

‡ The term "business organization" refers to how a business is structured. The business organization is defined in the bylaws when the business is formed with the name and contact information of those who own and run the company with their roles defined

‡ A corporation is a business organization that has shareholders and a board of directors that govern how the organization will be run. The shareholders are the owners. A corporation will continue to exist even after a shareholder dies.

‡ Corporations have their own tax identification number and file their own taxes. Owners are taxed on dividends paid on corporate profits and salaries paid by the corporation. Owners are not held personally liable. Corporations have the ability to raise large amounts of capital by becoming a publicly traded security.

‡ To do so requires board approval with the corporation meeting specific financial requirements outlined by the Securities Exchange Commission.

‡ A cooperative (also co-operative; often referred to as a co-op or coop) is defined by the International Co-operative Alliance's Statement on the Co-operative Identity as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.[1]

‡ It is a business organization owned and operated by a group of individuals for their mutual benefit.[2] A cooperative may also be defined as a business owned and controlled equally by the people who use its services or who work at it. Cooperative enterprises are the focus of study in the field of cooperative economics.

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