Business Organization Law and Legal Definition

A business organization is an entity aimed at carrying on

commercial enterprise by providing goods or services, to meet
needs of the customers. All business organizations: have the
common features such as formal structure, aim to achieve
objectives, use of resources, requirement of direction, and legal
regulations controlling them. The different forms of business
organizations are Sole Proprietorship, General Partnership,
Limited Partnership, Corporation, "S" Corporation, and Limited
Liability Company.
SOLE PROPRIETORSHIP- A sole proprietorship, also known
as the sole trader, individual entrepreneurship or proprietorship,
is a type of enterprise that is owned and run by one person and in
which there is no legal distinction between the owner and the
business entity.
PARTNERSHIP- A partnership is an arrangement where parties,
known as partners, agree to cooperate to advance their mutual
interests. The partners in a partnershipmay be individuals,
businesses, interest-based organizations, schools, governments
or combinations.
A general partnership is a business arrangement by which two
or more individuals agree to share in all assets, profits and
financial and legal liabilities of a jointly-owned business structure.

A Limited Partnership is a partnership consisting of a

general partner, who manages the business and has unlimited
personal liability for the debts and obligations of the Limited
Partnership, and a limited partner, who has limited liability but
cannot participate in management.
A C corporation, under United States federal income tax law,
refers to any corporation that is taxed separately from its
owners. A C corporation is distinguished from an S corporation,
which generally is not taxed separately.
A Subchapter S (S Corporation) is a form of corporation that
meets specific Internal Revenue Code requirements. The
requirements give a corporation with 100 shareholders or fewer
the benefit of incorporation while being taxed as a partnership.
The corporation may pass income directly to shareholders and
avoid double taxation. Requirements include being a domestic
corporation, not having more than 100 shareholders, which
includes only eligible shareholders and having only one class of
stock.

A limited liability company (LLC) is a corporate structure in the

United States whereby the owners are not personally liable for
the company's debts or liabilities.Limited liability
companies are hybrid entities that combine the characteristics of
acorporation with those of a partnership or sole proprietorship.