An organization that stands related to an organization that files Form 990 at any time during the tax year is called as a related organization. The related organization generally relates itself with the filing organization in the form of a parent organization, subsidiary organization, brother/ sister organization, or a supporting organization.
The related organization includes nonprofit organization, stock corporation, partnership or limited liability company, trust, and unit or an entity of a governmental organization.
Whereas a controlled entity is a type of a related organization defined under Code section 512(b)(13). According to the section, the entity includes subsidiaries that are more-than-50 percent controlled by the organization.