Unincorporated business organization legal definition of Unincorporated business organization
Massachusetts Trust (redirected from Unincorporated business organization)
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A business arrangement that is used in place of a corporation or partnership in which trustees hold title to property for the advantage of beneficiaries for investment purposes.
A Massachusetts trust is another name for a common-law trust or a Business Trust, which offers its beneficiaries limited financial liability in transactions in which it engages.
n. a business in which the investors give management authority to a trustee, and receive "trust certificates" representing their investments. Since they own only the certificates and do not participate in management, the investors can only lose their investment and are not personally liable for any debts of the trust. This is similar to a "limited partnership." A Massachusetts Trust is strictly a business entity and bears no relationship to a personal trust like living and testamentary trusts set up to manage and protect the assets of individuals and provide for eventual distribution.
References in periodicals archive
As a general rule, there is at least the expectation that there is a greater degree of modifiability permitted in unincorporated business organizations
than in business corporations.
We strongly urge the government to move forward in issuing guidance to simplify the method of classifying unincorporated business organizations
7701 to allow domestic unincorporated business organizations
to elect (i.e., "check the box") to be classified either as partnerships or corporations.
The Service has recently announced in Notice 95-14 that it is considering simplification of the regulations to allow unincorporated business organizations
to elect status as a partnership or as a taxable corporation.
Notice 95-14(33) provides that the IRS and Treasury are considering simplifying the classification regulations to permit taxpayers to treat domestic unincorporated business organizations
either as partnerships or associations on an elective basis.