Businesses can be categorised based on the type of work they do, who owns them, how they are structured organizationally, the number of workers they employ, or both. The words "firms," "companies," "establishments," "corporations," "organisations," and "institutions," to name just a few examples, are examples of common terms. Although they are often used interchangeably, these terms refer to distinct types of business environments.
This type of company engages in the business of selling products and services for the purpose of making a profit, most commonly professional services. Even though a company can offer its goods and services in more than one location, it is still considered to be a single entity because it is owned by the same people and must therefore have the same Employer Identification Number.
Firms such as accounting firms, consulting firms, law firms, and graphic design firms are examples of different types of firms. The Internal Revenue Service does not exercise operational control over a company.