The Different Types of Businesses – Which One is Right for You?


Nonprofits are often set up by a group, such as a church or charity, to do good in the world. To qualify as a nonprofit organization, you need to get tax exempt status from the IRS. Once you have that, the organization can raise funds and serve those in need.

A 501(c)(3) is the most common type of nonprofit organization. It is recognized by the IRS as an educational and religious institution, while also being tax-exempt and mostly volunteer based.

A joint venture is a business venture in which one company agrees to share its expertise, knowledge and resources with another company.

Joint ventures are typically formed between two companies that have complementary skills or offer complementary products or services.

For example, a car manufacturer might partner with an oil company to produce car engines that use less gas and emit fewer pollutants.

A joint venture is often the best way for a startup to get its product or service to market because it might not have the money to create the necessary infrastructure on its own or it needs help developing certain parts of the business model.