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Definition: A merger is a financial and business transaction where two companies combine to form a single new entity. The goal? To grow bigger, faster, leaner—or all three. This isn’t one company “buying out” the other (though that sometimes is what’s really happening behind the scenes). In a true merger, it’s supposed to be a joining of equals—like a business marriage, minus the cake and awkward speeches.

Definition of Franchise At its core, a franchise is a business model where one party (the franchisor) grants another party (the franchisee) the rights to use its brand name, business processes, and proven systems to sell a product or service. In exchange, the franchisee typically pays an initial fee and ongoing royalties to the franchisor. It’s like buying a “business in a box.” You get a recognizable brand, a tried-and-true operating playbook, and often ongoing support...

Definition of a Cooperative (Co-op) A cooperative is a business or organization that’s owned and operated by the people who use its services. Instead of being run for the profit of outside shareholders, a co-op exists to benefit its members. Each member has a say in how the organization is run—one member, one vote—regardless of how much money they put in. Think of it as “We all pitch in. We all benefit.”

Definition of Limited Liability Company (LLC) A Limited Liability Company (LLC) is a type of business structure in the U.S. that blends the simplicity of a sole proprietorship or partnership with the protection of a corporation. Think of it as the middle ground—like ordering a fancy burger but skipping the extra calories from fries.

An S Corporation—or S corp for short—is a special type of corporation that allows business owners to enjoy the legal protections of a corporation while avoiding the dreaded “double taxation” that typically comes with one.

A corporation is a legal business entity that’s separate from its owners. It can own property, enter into contracts, sue or be sued, and even pay its own taxes—basically, it’s treated like its own “person” in the eyes of the law. Corporations are created when a group of individuals (or even just one person) files the proper paperwork with their state government, typically called “articles of incorporation.”

A partnership is like a business marriage—two or more people agree to join forces, pool resources, and share in both the profits and responsibilities of running a business. Unlike a corporation, a partnership is not a separate legal entity, which means the partners are personally liable for the business’s debts and obligations (unless it’s set up as a limited partnership).

A Sole Proprietorship is an unincorporated business owned and run by one individual, with no legal distinction between the owner and the business. It’s easy to set up. In most cases, you don’t even have to file anything with your state (though you may need licenses or permits depending on your work). All income flows directly to your personal tax return using Schedule C on your Form 1040.

Community property is a legal concept that applies in certain U.S. states. In simple terms, it means any assets or debts acquired during a marriage are considered equally owned by both spouses—no matter who earned it or whose name is on the title. This rule applies in nine states (known as “community property states”): Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. A few others (like Alaska) allow couples to opt in.

Tenancy in Common is a way for two or more people to own property together. Each person owns a share of the property, but those shares don’t have to be equal. One person could own 50%, another 30%, and another 20%. The key here? Each person’s share is individually owned—meaning they can sell, gift, or will their portion to someone else without needing the others’ approval.

Definition: Joint Tenancy is a form of ownership where two or more people hold equal shares in an asset—usually real estate. The defining feature? Right of survivorship. That means if one owner passes away, their share automatically transfers to the remaining owner(s), bypassing probate.

modify, amend, or cancel it—except under very rare circumstances and usually only with court approval or the beneficiaries’ consent. This is the key difference from a Revocable Trust, which you can tweak or dissolve whenever you like. With an irrevocable trust, the assets are no longer legally yours—they belong to the trust, managed by a trustee for the benefit of your chosen beneficiaries.

A revocable trust, sometimes called a living trust, is a legal arrangement where you place your assets (like your home, investments, or bank accounts) into a trust during your lifetime. You still get to control and use those assets while you’re alive. And because it’s revocable, you can change it, update it, or even cancel it entirely if your circumstances or intentions change. In plain English? It’s like setting up a box where you put your stuff, but you still hold the keys

A Health Care Proxy is a legal document that allows you to appoint someone you trust to make medical decisions on your behalf if you're unable to speak for yourself due to illness or injury. This person—called your health care agent—steps in when you’re unconscious, mentally incapacitated, or otherwise unable to communicate your wishes.

A Durable Power of Attorney (DPOA) is a legal document that gives someone else (your "agent" or "attorney-in-fact") the authority to act on your behalf if you become mentally or physically unable to handle your own affairs. The word “durable” means it stays in effect even if you become incapacitated.

A Power of Attorney is a legal document that gives someone you trust the authority to act on your behalf in financial, legal, or medical matters—either temporarily or permanently. This trusted person is called your “agent” or “attorney-in-fact”

Probate is the legal process by which a deceased person’s will is validated, and their assets are distributed to heirs and beneficiaries. If there’s no will, the court appoints an administrator and distributes the assets according to state law.

Inheritance refers to the money, property, or assets that a person leaves to their heirs when they pass away. It’s often distributed according to the instructions in a will or through state laws if no will exists.

A beneficiary is a person (or entity) who is legally entitled to receive money, property, or other benefits from a financial product, legal agreement, or estate after someone dies or when certain conditions are met.

An executor is the person named in your will to manage your estate after you pass away. Their job? Handle your final financial affairs—think debts, taxes, and dividing up your assets to the people (or causes) you care about.