The concept of an accounting entity is fundamental in financial accounting and establishes the financial boundaries for businesses, organizations, or any other entities.
An association is a body of persons united without a charter, but upon the methods and forms used by incorporated bodies, for the prosecution of some common enterprise. Some entities may be associations taxable as a corporation.
A body corporate is a type of corporation consisting of a body of persons legally authorized to act as one person, distinct from its individual members.
A branch office is a place of operation for a firm that is located apart from the main office. It is owned by the firm owner but is managed by another person.
A C Corporation is a type of corporation that is taxed separately from its owners under Subchapter C of the Internal Revenue Code. This structure allows the corporation to retain earnings and provides liability protection for its shareholders.
A system outlining the hierarchy of authority and decision-making in organizations, where instructions flow downward and accountability flows upward.
A Chartered Company is a type of company that is incorporated through a Royal Charter, distinguishing it from companies incorporated under general company law or private acts of parliament.
Continuity of Life refers to the characteristic of a corporate structure where the organization continues its existence despite the death, incapacity, bankruptcy, retirement, resignation, or expulsion of its members.
A corporation is a legal entity composed of individuals that acts as a single entity with distinct legal rights and liabilities, separate from its members. It can be created by various legal forms, and can either be composed of a single person or several individuals.
A 'Doing Business As' (DBA) is a designation used when an individual or company operates under a name different from its legal, registered name.
A Family Limited Partnership (FLP) is a type of limited partnership where the majority of interests are held by members of the same family. It can provide tax benefits, such as reducing gift and estate taxes, but has limitations regarding ownership and transferability.
A for-profit corporation is a business entity established with the primary goal of earning profit for its shareholders. Unlike non-profit organizations, for-profit corporations operate to generate financial returns for their owners.
A junior partner is a partner in a firm who is limited as to both profits and management participation.
A limited company is a type of company structure where the liability of members is restricted to their investment or guarantee amount.
A Limited Company (Ltd.) is a legal business entity structure characterized by providing limited liability to its shareholders and often being managed by directors. Limited companies are separate legal entities, meaning their assets and liabilities are distinct from those of their shareholders.
Limited liability is a legal principle whereby a company's owners and shareholders are protected from being personally liable for the company's debts and liabilities, limited to the amount of their investment.
A limited partner's liability is restricted to his or her investment in the partnership. Limited partners are often passive investors and do not participate in the day-to-day operations of the business.
A Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership with those of a corporation. It provides its owners with limited liability protection while still allowing for the pass-through taxation benefits of a partnership.
An organization is a structured entity comprising roles and responsibilities designed to achieve predetermined objectives. Organizations encompass a wide range of areas, including private businesses, government agencies, non-profits, and more. In the twentieth century, organizations have expanded significantly in size and scope, adapting to the complex demands of modern economies and society.
Personal Service Corporation Definition A Personal Service Corporation (PSC) is a type of corporation whose main activity involves providing personal services. These services are typically performed by employees who own a significant portion of the corporation’s stock. The Internal Revenue Service (IRS) defines personal services to include activities in fields such as health, law, engineering, architecture, accounting, actuarial science, performing arts, and consulting. Due to their structure, PSCs are subject to certain adverse tax implications, most notably being taxed at the highest corporate tax rate.
A private limited company is a type of business entity which has limited liability and restricted ownership, preventing it from offering shares to the public.
A proprietary company, commonly marked with the suffix 'Pty' or 'Pty Ltd,' is a type of privately held business entity predominantly associated with Australia. Such companies have restrictions on the transferability of shares and are limited to a maximum of 50 shareholders.
An abbreviation for proprietary company, used primarily in Australia and the Republic of South Africa to denote private limited companies.
A registered company is a formal business entity that has been incorporated in England, Wales, or Scotland through a registration process with the Registrar of Companies. It can be a limited or unlimited company and may operate as either a private or public entity.
A service business is a form of business that provides various types of labor services in a wide variety of business sectors, aiming to fulfill specific customer needs.
A sole proprietorship is a business or financial venture that is carried on by a single individual and is not organized as a trust or corporation. The sole owner has unlimited liability and reports income and expenses on Schedule C of Form 1040.
A subsidiary company is a firm that is fully or partially owned and controlled by another company, known as the parent company or holding company. The parent company owns more than 50% of the subsidiary's voting stock, giving it control over the subsidiary's operations and strategic direction.
Y.K. or Yugen-Kaisha is a Japanese business designation for a form of corporation similar to a limited liability company in other jurisdictions.
