Definition
A for-profit business is a type of enterprise that generates revenue that increases the wealth of its owners. These firms are involved in the trade of goods and/or services to their consumers and are abundant in capitalist economies.
Types of For-Profit Ownership
Sole proprietorship: owned by one person who has unlimited liability for the firm
Partnernship: owned by two+ persons with shared unlimited liability for the firm
Cooperation: also referred to as “co-op”, this limited liability business has members instead of shareholders who make the decisions about the company
Corporation: limited liability business owned by shareholders who elect a board of directors to run the company. There is a separate legal personality for its members.
Types of For-Profit Business
Benefit Corporation: see Benefit Corporation
S Corporation: S Corporation
C Corporation: C Corporation
LLC: see Limited Liability Company
