The four main categories that make up a sponsorship are: sponsors, sponsors’ association, sponsoring corporation, and corporate entity.
Sponsors’ association is the umbrella of the corporate entity, including corporate foundations, corporations, and partnerships.
A corporate entity may be a sole proprietorship, a limited liability company, a partnership, or a limited partnership.
For more information on these terms and definitions, see the Sponsorship Guide for the most up-to-date information.
Sponsorships may be split between different categories.
A single sponsor may have multiple sponsors in a given industry or geographical area.
Some companies are listed as “partners” to another company or partnership.
Partnerships are generally legal entities that form part of a partnership.
The term “partner” means a person who has a financial interest in the business relationship between two or more companies.
Companies may be named in a partnership by using a name of their own or the name of a company that they own.
Many corporate entities are named after famous people.
For example, the Coca-Cola Co. is the name given to a limited-liability corporation that is controlled by former Presidents Bill Clinton and George H.W. Bush.
Corporations are generally recognized as corporations for tax purposes, but some corporations may be called “limited partnerships” for tax reasons.
Certain types of companies may be limited liability partnerships.
For more information, see Non-Corporate Corporations for Tax Purposes.
Chips are the liquid assets of a business.
A business is not a corporation.
Each of these companies may have a number of individual owners.
For the most part, corporations are limited liability corporations.
Non-corporate corporations are the most common type of non-corporation.
For an example of a non-profit corporation, see our Non-Business Corporations Guide.
There are many different types of corporate entities, and the term “corporate entity” is sometimes used to describe all of them.
In some industries, there are many types of corporations, but for some purposes, there may be only one corporate entity for a particular industry.
For instance, some health care organizations have a single corporate entity that is the same for all health care practices.
Most corporate entities consist of a few companies with limited liability or partnership rights.
Other types of nonconforming companies are generally non-profits.
The term “non-profit” refers to a noncorporate business that is operated for profit or is exempt from federal income taxes under certain circumstances.
For a more detailed explanation, see IRS Publication 525.
More information about corporate entities is available in the Corporations and Nonprofits section of the IRS Publication 527, the IRS Guide for Business Corporations.
You may also need help to define your sponsorship or corporate entity status.
Find more details about sponsorship or entity definitions in our Sponsorship and Corporate Status Guide.
The term sponsorship means the right to receive, or otherwise benefit from, money or other valuable consideration from someone, usually through a transaction such as a contract, license, or agreement.
When a sponsor gives money to someone other than the sponsor, it is called a contribution.
Generally, a sponsorship includes: Sponsor receives money from sponsor for his/her own use.
An agreement gives the sponsor a share of the proceeds of a transaction.
This type of sponsorship is known as a partnership or a corporate entity because it is formed by the corporate body as a legal entity.