A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members. The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company, such as a corporation or cooperative.Ĭorporations, in contrast with sole proprietors and partnerships, are a separate legal entity and provide limited liability for their owners/members, as well as being subject to corporate tax rates. The proprietor is personally taxed on all income from the business. A business structure does not allow for corporate tax rates. If the business acquires debts, the creditors can go after the owner's personal possessions. Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. It is also "any activity or enterprise entered into for profit." ( Learn how and when to remove this template message)īusiness is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). Please discuss this issue on the article's talk page. Please consider splitting content into sub-articles, condensing it, or adding subheadings.
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