People 15 November 2018
While traveling around Africa on vacation, I needed to go for long training runs as I was slated to run an IRONMAN Triathlon the day after returning to the United States. I strategically plan my races at the beginning of the year so this was very important to me.
When I asked the managers at the camp in Tanzania for a good route for me to run, they told me that I would be required to have security guard accompaniment in case I encountered any dangerous animals. They also told me that I was the first woman ever to request an outdoor run, which was crazy to hear!
I went for runs two days in a row, and a group of locals joined me on the second day. Several of them commented on how they rarely have the opportunity to enjoy exercise given the risky circumstances of their environment.
This experience and their perspective made me mindful about the degree to which we often take self-care and access to safety for granted, and it inspired me to want to become more involved with global wellness initiatives.
As word spread about my runs in Tanzania, I was asked to participate in the first ever Serengeti Girls Run, a 55-mile run over the course of three days. I was also asked to speak to a group of 400 local high school students about confidence, self-esteem, and empowerment. I was honored and really excited to be able to share some experiences with them and hopefully make an impact. I am so passionate about STEM and mentoring our future leaders that this was right up my alley.
In October 2018, I participated in the first-ever women-only run across the Serengeti wilderness as part of a fundraiser for female empowerment programs hosted by the Singita Grumeti Fund and BRAVE:
The run aims to raise funds and awareness about the challenges facing girls and women living in nearby communities and seeking sustainable solutions.
The main focus is on opportunities for women to become leaders in conservation in their communities and countries.
Singita Grumeti Fund programmes include a secondary school, vocational studies and university scholarships, life skills, enterprise development training, environmental education, and internships.
On the first day, I spoke to the crowd and then joined the other participating women for a solidarity ‘fun run’ with girls from the local community. This was an incredible experience for me. During the ‘fun run’ a few of the girls ran along my side, holding my hand, and we sang Beyonce for the 4 miles. I will never forget how happy and free those girls felt as they ran down the streets of Tanzania.
Later, I showed the girls an iPhone, and many of them commented on how they had never seen the technology and hadn’t seen pictures of themselves before. The girls were grabbing the phone to see their pictures and more importantly asking questions-very curious and intriguing minds. The 400 school girls that I met along the journey wanted to know everything from self-esteem, to what it takes to work hard, to what to study, and to what I like to eat. They asked loads of questions.
For the Serengeti Run itself, I ran 18 miles each day for three days (for a total of 90 km / 55 miles), accompanied by the Singita Grumeti Fund anti-poaching, Special Operations Center armed guard scouts and nine other women. While running, we were able to witness the wildlife in the plains. It wasn’t about just doing a race- it was the people coming together from around the world and doing this for a cause that helped Africa overall and made a difference in the world. The bonds that I formed with these women are some that I will cherish for the rest of my life. I was inspired, uplifted, and so proud of what we accomplished together. The bonds made friends for life and a moment captured in my life that was so unique that it couldn’t be remade- we made history together through the Serengeti.
I was so inspired by the locals, my fellow participants, and all of the folks that I encountered on this trip. They are now my friends for life.
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.