To receive tax- exempt status, an organization must first incorporate as a nonprofit corporation. After incorporation, applications for tax- exempt status must be filed with the Internal Revenue Service and the Texas Comptroller of Public Accounts. In order for contributions to the organization to be tax deductible, other requirements must be met. Certain charitable organizations also may face additional requirements. Franchise A franchise is a method of selling and distributing goods and services.
Franchises are available for many types of ventures.
A franchise, unlike the options previously discussed, is not a form of business organization. A franchise is an arrangement between at least two parties, in which one party pays the other a fee for the right to engage in a particular business venture. Franchises are regulated by the Federal Trade Commission and the Texas Secretary of State. As previously mentioned, there are a number of issues that impact businesses, whether sole proprietorships or corporations. The following discussion summarizes the most common of these issues.