In the Company and Management section, explain how your company will be structured and who will run it. Detail the legal structure of your business, whether it will be incorporated as a C or S corporation, formed as a general or limited partnership, or if you will be a sole proprietor or LLC.
Include details about human resources, the company's history, an organization chart with team details (consider including resumes and CVs for key team members), locations and facilities.
Sole proprietorship: An unincorporated, one-owner business, farm, or professional practice. The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership.
Corporation: A legal entity, chartered by a state or the federal government, recognized as a separate entity having its own rights, privileges, and liabilities distinct from those of its members.
S corporations: Corporations that are considered noncorporate for tax purposes but legally remain corporations. Different from a regular (or C) corporation.
Partnership: Two or more parties who enter into a legal relationship to conduct business for profit. Defined by the U.S. Internal Revenue Code as joint ventures, syndicates, groups, pools, and other associations of two or more persons organized for profit that are not specifically classified in the IRS code as corporations or proprietorships.
Limited liability partnerships (LLP): A business organization that allows limited partners to enjoy limited personal liability while general partners have unlimited personal liability
Limited liability company (LLC): A hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Depending on the state, the members can consist of a single individual (one owner), two or more individuals, corporations or other LLCs.
Nonprofit: An organization that has no shareholders, does not distribute profits, and is without federal and state tax liabilities.
Find these key terms and more in the Gale Business: Entrepreneurship glossary.
This guide was developed with the assistance of the City of Austin
Economic Development Department Small Business Division.