Startup

A sole proprietorship is a business owned and operated by one person. It’s simple to set up, has fewer legal requirements, and the owner assumes all profits and liabilities personally.

An LLC offers flexibility in management and taxation, while corporations have stricter structures and potential for double taxation unless designated as an S Corp. Corporations are better for raising capital; LLCs suit smaller businesses.

An Employer Identification Number (EIN) can be obtained from the IRS online or by mail. It’s required for hiring employees, filing taxes, or opening business accounts.

A non-profit is an organization that operates to serve a public or social cause rather than to generate profits for owners or shareholders. Any revenue earned is reinvested into its mission rather than distributed as income. Non-profits can focus on various areas, including education, healthcare, environmental conservation, and social services. They often rely on donations, grants, and fundraising efforts to support their work and may qualify for tax-exempt status, meaning they are not required to pay certain taxes if they meet specific legal requirements.

A startup is a newly established business that is typically in its early stages of development and aims to bring an innovative product or service to market. Startups often focus on growth, scalability, and securing investment to expand operations. They may operate with limited resources, testing business models and adapting strategies as they develop. While many startups are in the technology sector, they can exist in any industry. Success depends on factors such as market demand, competition, and the ability to secure funding and manage growth effectively.