Business and Partnership Relationships – Understanding the Difference Between These Two Types of Business entity
A business is often defined as any entity or individual, whether for-profit or not-for-profit, that undertakes commercial, organizational, or promotional activities for profit. Companies can be either for-profit or non-profit entities that work to meet a social cause or further a socially responsible purpose. Business activities may include the production and sale of products and services, the management and operation of financial assets, ownership of real property, franchises, supplies, and information. In short, the business includes all those elements that make a society what it is and make money, not the other way around.
Most businesses today have some type of social media presence. This is evident in websites such as Twitter, Facebook, YouTube and LinkedIn. However, for businesses that are new to these types of sites and businesses that are creating their first page on these sites, discovering and establishing viable social media partnerships can help lead to increased awareness, visibility and, hopefully, sales. Here are some of the top 15 examples of social media business functions:
Non-Profit Corporations: A non-profit corporation is one that is not-for-profit and operates solely for profit. Examples of non-profit corporations include charities, religious organizations, schools, universities, and the like. The business plan associated with these types of businesses often uses the same or similar language as those for businesses for profit: identifying customers and prospects, establishing strategic goals and strategies, creating a strategic marketing plan, identifying funding sources, monitoring and evaluating results, measuring success and benchmarking, and sharing future strategy and plans.
Business with Social Media Partnerships: Many businesses are finding that it is easier to share information, conduct business, and share information with those that engage their interests than it is when they do it alone. For example, many homeowners create online gardens, collect fresh produce for their households, and other similar activities. Other businesses have blog sites, Facebook accounts, YouTube channels, and various social media accounts. Many businesses have websites that contain hundreds or thousands of images, videos, text, and other types of media. While each business might use different aspects of these different forms of engagement, when all of these types of activities are combined, the result is much more powerful than simply creating a website or sending a tweet.
Business and Partnershiphips: A partnership or proprietorship, as defined in IRS Sec. 6vi(a), is a business entity that has more than one type of ownership interest. The most common examples of this would be a partnership that consists of two companies and/or individuals. Other examples would be a partnership that includes one corporation and several proprietor or shareholder.
Limited Liability Company: One of the most common ways that a business owner can establish a partnership or proprietorship is by forming a limited liability company. A limited liability company is also commonly referred to as a LLC and can be used in a variety of ways depending on the state in which the LLC is registered. In most cases, an LLC will be considered a pass-through entity. This means that the company is only liable for the activities of the owners or proprietors of the LLC, and nothing else. This is a very valuable asset for limited liability companies, as they do not need to worry about being liable for debts of other entities.
Corporations and LLCs: Many businesses and LLCs are actually incorporated as corporations. However, some businesses choose to form limited liability partnerships instead. A partnership is considered a partnership if one partner is a corporation or LLC. However, a corporation can also become a partnership. There are differences between these two, and the rules and regulations related to them vary from state to state.
Business and partnership relationships are very important and should be handled carefully. Both partnerships and sole proprietorships can be taxed as income, depending on the state in which the partnership or sole proprietorship is filed. When it comes to LLCs, however, they are treated much like S corporations, which are not taxed as income. This makes an LLC a valuable asset for many different types of small business owners.