Organization Information




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Online Organization Registration Organizations Required to Register
Determine your type of organization from the descriptions below.

The District requires the following businesses to register:
The District does not require these businesses to register:
To learn more, contact the Corporations Division at (202) 442-4432 or Ask the Director. Please consult your attorney for advice on legal questions.
Business Type
Definition
Liability
Management & Control
Ease of Set Up
Taxation
General Partnership Association of 2 or more people to carry on as co-owners of a business for profit Partners: total, unlimited, including personal assets General partners: each has equal control Few tax benefits Profits taxed to partners based on ownership percentages
Can claim on personal taxes
Limited Partnership Special partnership type with limited legal liabilities General partners: personally.
Limited partners: liable for their business investment 		General partners:
management control.  Limited partners: none 		Easy to set up and maintain Partners: profits personally, on ownership percentages.  Can claim on personal taxes
Limited Liability Partnership Special partnership type made up of general partners only Each general partner has limited legal liability Each general partner has equal control Easy to set up and maintain Special tax consequences
S Corporation
(For Profit)
(IRS determines tax status) 		Organized with intent of making a profit; required to issue stock shares Board/ officers: very little limited personal liability Board sets policy; controls president. Officers conduct day-to-day operations Must meet certain IRS rules Cumbersome process Partners: profits personally taxed based on ownership percentages Shareholders: taxed on dividends
C Corporation
(For Profit) (IRS determines tax status) 		Organized with intent of making a profit; required to issue stock shares Limited, but not total from lawsuits.  Shields owners personally Shareholders, directors, officers run.  Directors generally set policies Most complex business structure. Stricter government control Earnings "double-taxed": corporations taxed; shareholders get dividends.  Some other tax benefits
Not for Profit Corporation No owners; gives no income (except salaries/ expenses) to members, directors, or officers Personal liability protection except for willful misconduct Vested in board of directors and/or voting members May be complex; require more paper work, research May seek tax exemption from IRS (under specific guidelines)
Cooperative Association Group of people for mutual benefit. (Ex: apartment building resident owners) Limited liability Managed by members Any 5/more people or 2/more associations may incorporate Members may be taxed on dividends
Limited Liability Company Unincorporated association, with or without perpetual duration, with one or more members, domestic or foreign Owners risk only their investment.  Personal assets not at risk Owners manage, control business. Can be run by one person More complicated than partnership.  Easier to set up, maintain than corporation LLC: on earnings. Owners: on business income.  Some other tax benefits
Sole-Proprietorship Unincorporated business Total/unlimited; can take personal assets to pay debts Total personal control Very easy to set up and maintain Owner: personally taxed on profits