Business is a commercial activity engaged in as a means of livelihood or profit, or as an entity which engages in such activities.http://www.investorwords.com/623/business.html There are laws that dictate how a business operates or is conducted; those laws vary from country-to-country, and from states, provinces, districts, or cities within countries, as well.

In capitalist economies, the means of production is privately held.http://www.financial-dictionary.thefreedictionary.com/Capitalist+society The individual can own and operate a business, assuming the risk of profit or loss. In communist economies, the state determines how businesses are run and allocates resources accordingly.http://www.auburn.edu/~johnspm/gloss/communism The means of production in mixed economies is shared between the public and private sector. http://www.businessdictionary.com/definition/mixed-economy.html

Business etiquette also variest. According to kwintessential.co.uk, the Dutch engage in relatively little small talk during meetings. In Brazil, business meetings are generally informal and in certain cities it is acceptable to arrive a few minutes late.http://www.kwintessential.co.uk/resources/global-etiquette/brazil-country-profile.html

Sole Proprietorship

This type of firm is owned by one person, many times the person running the day-to-day operations of the business. The sole proprietor assumes responsibility for all profits and/or liabilities associated with the business.http://www.themoneyalert.com/businesstypesofownership.html

Partnership

A partnership has two or more owners running the firm. The owners are responsible for all profits and debts assumed by the business. They can also own property, unlike in a sole proprietorship, and incur debt in its name.http://www.asbtdc.ualr.edu/business-information/1005-legal-forms-ownership.asp

Corporation

A corporation is considered to be a unique entity separate from its owners. It must be chartered by the state in which it is headquartered to gain this distinction. The owners are called shareholders and elect a board of directors to oversee major decisions. A corporation can enter into contractual agreements. http://www.themoneyalert.com/businesstypesofownership.html

S Corporations

An S Corporation is a tax designation only. It has the same features as a corporation only the IRS allows it to be taxed like a partnership.http://www.asbtdc.ualr.edu/business-information/1005-legal-forms-ownership.asp

Limited Liability Companies

The newest form of business ownership combines elements of the partnership and the corporation. It offers the pass-through taxation of a partnership with the limited liability of a corporation.http://www.asbtdc.ualr.edu/business-information/1005-legal-forms-ownership.asp A Limited Liability Company cannot have more than two of the following four characteristics that define corporations: centralization of management, free transferability of ownership interests, continuity of life, and limited liability to the extent of assets.http://www.themoneyalert.com/businesstypesofownership.html

Non-Profit Organizations

This is an organization engaged in activities of public or private interest where making profit is not a primary goal. Some non-profits may be exempt from paying federal taxes. http://www.business.gov/register/incorporation/

Cooperative

A cooperative is owned by and operated for the benefit of those using its services. It is not a legal structure.http://www.business.gov/register/incorporation/

"Incorporation" is the process a corporation goes through to attain separate legal standing from its owners. This can also protect its owners from being sued.http://www.investorwords.com/1140/corporation.html These documents or "articles of incorporation" are filed with the state government and vary from state-to-state. Some states require a board of directors and stock to be issued to initial shareholders during the process. For larger companies forming a corporation, an IPO, or "Initial Public Offering," may be staged in which shares of stock are issued to cover its overhead cost.http://www.business.gov/register/incorporation/corporation/

Stock signifies an ownership position or "equity" in the corporation, and represents a proportion of its assets and debts.http://www.investorwords.com/4725/stock.html After the board of directors has established the price per share of its stock, investors may contribute cash, property, and services in exchange for company stock certificates. Shareholders are not permitted to receive more than they have invested in the corporation.http://www.smallbusiness.chron.com/c-corporation-work-4767.html

Corporations are required to hold a meeting at least once a year for shareholders and directors. The minutes from both meetings must be kept on record. Those minutes will also include the respective voting records. Corporations have to file financial statements and annual reports with each state where the company conducts business.http://www.smallbusiness.chron.com/c-corporation-work-4767.html

The content in this page is not a substitute for professional legal advice. Please contact a law professional before using the information presented here.