As per Lawkidunya, Startups and Small Businesses are defined differently under various laws and regulations. Here are some general definitions:
Startups
1. Definition: A startup is typically defined as a newly formed business that is in the early stages of development, often with high growth potential.
2. Age: Startups are usually considered to be within the first 3-5 years of operation.
3. Revenue: Startups often have limited revenue, typically under $1 million.
4. Innovation: Startups often focus on innovative products, services, or business models.
Small Businesses
1. Definition: A small business is typically defined as a business that is independently owned and operated, with a limited number of employees and revenue.
2. Number of Employees: Small businesses usually have fewer than 500 employees.
3. Revenue: Small businesses typically have annual revenues under $7.5 million.
4. Ownership: Small businesses are often family-owned or privately held.
Legal Definitions
1. Small Business Administration (SBA): The SBA defines a small business as one that is independently owned and operated, with a limited number of employees and revenue.
2. Internal Revenue Code (IRC): The IRC defines a small business as one with average annual gross receipts of $5 million or less.
3. Securities and Exchange Commission (SEC): The SEC defines a small business as one with a public float of less than $250 million.
These definitions may vary depending on the specific law, regulation, or program. It’s essential to consult with a legal or financial professional to determine how these definitions apply to your specific business.