What's the difference between a company and a corporation?

Question

What's the difference between a company and a corporation? Please make this an elementary answer!

Answer 1

A company is a form of business organization.



In the United States, a company is a "corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise." Generally, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and (in an official capacity) any receiver, trustee in bankruptcy, or similar official, or liquidating agent, for any of the foregoing."



So, a corporation is a form of company whose articles of incorporation have been approved in some state



In business we typically structure companies under state law in one of these forms:

Corporations (have shares and shareholders)

Limited Liability Companies (LLCs) (have shareholders or members)

Limited Partnerships (LPs) (have General Partners and Limited Partners)

Limited Liability Partnerships (LLPs) (have general and limited partners)

Sub Chapter S Corporations have for all intensive purposes been replaced by LLCs



It is incorrect to say that a company has unlimited liabilities. It depends on how it is structured. It is however correct that the corporation can shield its shareholders from liabilities.

Answer 2

A corporation is incorporated under state law where as a company is not. A corporation is owned by shareholder(s). Most large corporations are public corporation, its shares are traded in the stock exchange. If the Corporation is not a public corporation, its shares are not publicly traded. They are held by one or more individual.



A corporation has limited liabilities. If the corporation goes bankrupt, shareholders only lose their investment. A company has unlimited liabilities. If the business goes bankrupt, the owner could held personally liable for all debts.

Answer 3

A COMPANY IS A GROUP OF PEOPLE OR ONLY JUST A INDIVIDUAL WHOM RUNS A BUSINESS ETC IT CAN BE A LIMITED LIABILITY FORMAT. A CORPORATION IS THE SAME AS ABOVE, BUT THE OWNERS APPOINT A BOARD OF DIRECTORS TO GOVERN / MANAGE THE FIRM AS THEY SEE FIT.