Special business forms are businesses that have characteristics of different types of typical businesses. For example, a special business form may have characteristics of a corporation and partnership. This is why such businesses are given a special category.
What Are Different Types of Special Business Forms?
- Joint Venture - This occurs when two or more persons or businesses combine their efforts and resources to pursue a related series of transactions or projects.
- Syndicate - A syndicate is also known as an investment group. A group of people is a syndicate when they get together to finance and invest in a particular project. A syndicate may or may not be in charge of supervising the project. An example of a syndicate is when businessmen pool money together to buy a professional sports franchise.
- Joint Stock Company - This form of business has characteristics of both a corporation and a partnership. Like a corporation, a joint stock company sells stock to shareholders. Like a partnership, the shareholders are liable for all debts of the company.
- Business Trust - A business trust is a trust set up for the legal ownership and management of a business. A business trust is created by a written trust agreement. The trustees own and run the business while the profits are distributed among the beneficiaries.
- Cooperative - These are widely known as associations. A cooperative provides an economic service, without profit, to its members or shareholders. A common cooperative is a home owner association. They provide maintenance, guidelines, and safety operations to a residential community for a fee.
How Can an Attorney Help Me?
The characteristics of a corporation, partnership, or other typical business forms are often mixed together when a special business form is created. This can cause legal confusion because you may be unsure as to which laws apply. An experienced business attorney can inform you of your rights and defenses for a particular business form. An attorney can advise you on complex issues and help resolve any dispute you may have.