A business in an effort designed to develop revenues and income for its owners. Company refers to the business structure or a legal form of organization. It has limited liability imposed on its owners as its basic feature. It is known by various names or nomenclature in different countries, for example, limited liability company (LLC), private limited company, public limited company, etc. It may have pass-through taxation benefit depending on the country.
A corporation is a fictional “person” designed to allow the agglomeration of wealth from multiple people while limiting liability for the purpose of enabling economic activity. Corporations are not necessarily businesses, and businesses which are not “Sole Proprietorships” or “Partnerships” are not corporations.
Key Differences between Company and Corporate:
- Suitability: Company is suitable form of business organization or legal structure for smaller businesses or entities; while165 corporate is more suitable for larger businesses or entities.
- Owners: The owners of a company are its members; while the owners of a corporate are its shareholders.
- Limits of ownership: There are a limited number of owners/members in case of a company; while there are no limits on the number of owners/shareholders in case of a corporate.
- Legal Status: A company has a separate entity from its owners; but in certain cases like frauds, members or partners might be held liable; whereas a corporate has totally separate legal entity from its owners.
- Management: A company has members or managing members of the company for management; while a corporate has Board of Directors, overseeing the officers and executives.
- Meeting: It is not mandatory for a company to hold meetings at regular intervals; while in case of the corporate entity, shareholders’ meeting is required to be held on a periodical basis such as annual meeting. The recording of minutes of the meeting is also needed.
- Legal requirements: A company has less legal requirements which are to be fulfilled; paperwork is also less in case of a company; while a corporate has to fulfill a lot of legal requirements, along with heavy paperwork.
- Names: A company is known by different names or nomenclatures in different countries such as limited liability company (LLC), professional limited liability company (PLLC), private limited company, limited liability partnership (LLP), company, etc.; while a corporate is known as incorporated (Inc.), corp., S corporate, C corporate, corporate, public limited company (Plc.), etc.