Economic Enterprise: A Comprehensive Guide to Its Legal Meaning

Definition & Meaning

The term economic enterprise refers to any commercial, industrial, or business activity that is owned by an Indian individual or group, with the primary goal of generating profit. To qualify as an economic enterprise, at least fifty-one percent of the ownership must be held by Indian individuals, as defined by the Secretary of the Interior. This definition emphasizes the importance of Indian ownership in promoting economic development within Indian communities.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A group of Native American entrepreneurs establishes a retail store that sells handmade crafts. The store is owned by tribal members, ensuring it qualifies as an economic enterprise.

Example 2: A tribal council creates a construction company to provide services for local infrastructure projects. The company is at least fifty-one percent owned by tribal members, meeting the criteria for an economic enterprise. (hypothetical example)

State-by-state differences

State Notes
California Has specific programs to support Indian-owned businesses.
Arizona Offers tax incentives for economic enterprises owned by tribal members.
New Mexico Provides grants for Indian economic development initiatives.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Difference
Small Business A privately owned corporation, partnership, or sole proprietorship. Economic enterprises must have a majority Indian ownership.
Tribal Enterprise A business entity owned and operated by a tribe. Economic enterprises can be owned by individuals, not just tribes.

What to do if this term applies to you

If you are considering starting an economic enterprise, follow these steps:

  • Ensure that at least fifty-one percent of the business is owned by Indian individuals.
  • Consult local laws and regulations regarding business formation and operation.
  • Consider using US Legal Forms to access templates for necessary legal documents.
  • If your situation is complex, seek advice from a legal professional.

Quick facts

  • Ownership Requirement: At least fifty-one percent Indian ownership
  • Purpose: Must be established for profit
  • Types of Activities: Commercial, industrial, or business-related

Key takeaways