Some legal forms do a better job of facilitating some forms of investments. Any lawyer worth their salt would, of course, say, “it depends…”
COOPERATIVES
COOPERATIVES
A structure that allows members to have share in ownership and the decision making process of an organization and may potentially allow non-member money
Cooperative Societies (UK), Fraternals (US)
CORPORATIONS
CORPORATIONS
A company or group of people authorized to act as a single entity (legally a person) where each shareholder is taxed on the dividends on their shares
International Corporation, Transnational Corporation, Stateless Corporation, Multinational Corporation
PARTNERSHIP
PARTNERSHIP
An association of individuals or entities that join together to conduct business and each partner has unlimited liability
Joint Venture, General Partner (UK)
COMPANIES
COMPANIES
A business organization that allows for significant flexibility in how members organize themselves and allows for passed-through taxation
LLC or LLP (US), Private Limited Company (UK)
HOLDING COMPANIES
HOLDING COMPANIES
This type of company owns enough voting stock in other companies to control policies and management. They exist for the purpose of owning property, such as real estate, patents, trademarks, and other assets
Parent Company
INDIVIDUALS (WITH A BANK ACCOUNT)
INDIVIDUALS (WITH A BANK ACCOUNT)
Anyone who holds a bank account can issue loans and therefore can enter into a legally binding financial contracts
Sole Proprietorship
GENERAL PARTNERS
GENERAL PARTNERS
A general partner is an owner that has unlimited liability and is active in the day to day operations, usually as a managing partner
LIMITED PARTNERS
LIMITED PARTNERS
An ownership arrangement that includes at least one General Partner that has unlimited liability for the debts and liabilities of the partnership and at least one Limited Partner whose liability is generally limited to his/her investment in the partnership
Limited Partnership (Canada)
NOT FOR PROFIT ORGANIZATIONS
NOT FOR PROFIT ORGANIZATIONS
An organization that does not have owners and is usually formed to achieve some charitable, educational or civic purpose; money earned by or donated to a not for profit organization is used in pursuing the organization’s purpose or mission and may be closely regulated by the state
501c3, Charitable Entity, Mutual Society, Non Governmental Organization
SOCIAL PURPOSE COMPANIES
SOCIAL PURPOSE COMPANIES
A form of corporation where the board is permitted or mandated to consider the interests of stakeholders other than shareholders
Community Interest Company (UK)
Benefit Corporation (US)
SOLE PROPRIETORS
SOLE PROPRIETORS
The exclusive owner of a business, entitled to keep all profits after tax has been paid. They are simple and cheap to set up, but owners are personally liable for all losses
OTHER SECTION CATEGORIES





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