How to define them?
What is the difference between them in both financial reporting and tax?
What is the difference between them in both financial reporting and tax?
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A partnership is defined on page 20-2 of TTB as “an unincorporated organization with two or more members...Co-ownership of property maintained and rented or leased is not a partnership unless the co-owners provide services to the tenants.”
Wikipedia http://en.wikipedia.org/wiki/Affiliate says this about an affiliate: “A corporation may be referred to as an affiliate of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid the appearance of control. This is sometimes seen with multinational companies that need to avoid restrictive laws (or negative public opinion) on foreign ownership.”
Wikipedia http://en.wikipedia.org/wiki/Subsidiary defines a subsidiary as “an entity which is controlled by another entity. The controlled entity is called a company, Corporation, or Limited Liability Company, and the controlling entity is called its parent (or the parent company). The reason for this distinction is that an individual cannot be a subsidiary of any organization, only an entity representing a legal fiction as a separate entity can be a subsidiary. This is because individuals have the capacity to act on their own initiative; a business entity can only act through its directors, officers and employees.” -
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