Corporation vs. Company: Know the Difference
By Shumaila Saeed || Published on January 16, 2024
A corporation is a legal entity owned by shareholders, offering limited liability, while a company is any business entity engaged in commercial, industrial, or professional activities.
Key Differences
A corporation is a specific type of company that has been incorporated, giving it a distinct legal identity from its owners. Companies, in general, can include various forms, such as sole proprietorships, partnerships, or corporations, each with different legal implications.
Shumaila Saeed
Jan 16, 2024
Corporations are owned by shareholders who enjoy limited liability, meaning they are not personally liable for corporate debts. In contrast, a company, depending on its form, may not offer this limited liability, and owners could be responsible for debts and obligations.
Shumaila Saeed
Jan 16, 2024
Corporations are subject to corporate tax rates and have unique tax reporting requirements. A general company's tax obligations vary depending on its structure, such as a sole proprietorship being taxed on personal income tax returns.
Shumaila Saeed
Jan 16, 2024
Corporations typically have a structured board of directors and must adhere to specific regulatory and reporting requirements. A company, especially if not a corporation, may have more flexible governance structures.
Shumaila Saeed
Jan 16, 2024
Corporations are often perceived as large, possibly multinational, entities with significant legal and financial structures. Companies encompass a broader range of business types, from small local businesses to large corporations.
Shumaila Saeed
Jan 16, 2024
ADVERTISEMENT
Comparison Chart
Legal Status
A distinct legal entity separate from its owners.
Can be any business entity, incorporated or not.
Shumaila Saeed
Jan 16, 2024
Ownership and Liability
Owned by shareholders with limited liability.
Owners' liability depends on business structure.
Shumaila Saeed
Jan 16, 2024
Taxation
Subject to corporate tax rates.
Taxation varies by business structure.
Shumaila Saeed
Jan 16, 2024
Governance
Structured board of directors, strict regulations.
More flexible, depends on the type of company.
Shumaila Saeed
Jan 16, 2024
Public Perception
Often large, multinational entities.
Includes businesses of all sizes.
Shumaila Saeed
Jan 16, 2024
ADVERTISEMENT
Corporation and Company Definitions
Corporation
A corporation is formed under legal guidelines, granting it certain legal rights.
The corporation was able to sue and be sued, owning property in its own name.
Shumaila Saeed
Jan 09, 2024
Company
A company is formed to pursue a common business goal or to provide a service.
The company specialized in digital marketing services.
Shumaila Saeed
Jan 09, 2024
Corporation
A corporation is a legal entity that is separate from its owners.
Apple Inc. is a corporation that designs and sells consumer electronics.
Shumaila Saeed
Jan 09, 2024
Company
A company may or may not be a separate legal entity from its owners.
In a partnership company, the partners share liability for business debts.
Shumaila Saeed
Jan 09, 2024
Corporation
A corporation is owned by shareholders who share profits but are shielded from personal liability.
In the corporation, shareholders' personal assets are protected from business debts.
Shumaila Saeed
Jan 09, 2024
ADVERTISEMENT
Corporation
A corporation can raise capital by selling shares of stock.
The corporation issued new shares to fund its expansion plans.
Shumaila Saeed
Jan 09, 2024
Company
One's companions or associates
Moved in fast company.
Is known by the company she keeps.
Shumaila Saeed
Jan 05, 2024
Corporation
A corporation is subject to specific tax regulations and reporting requirements.
The corporation filed its annual tax return in compliance with federal regulations.
Shumaila Saeed
Jan 09, 2024
Corporation
An entity such as a business, municipality, or organization, that involves more than one person but that has met the legal requirements to operate as a single person, so that it may enter into contracts and engage in transactions under its own identity.
Shumaila Saeed
Jan 05, 2024
Company
The state of friendly companionship; fellowship
Was grateful for her company.
Friends who finally parted company.
Shumaila Saeed
Jan 05, 2024
Corporation
Such a body created for purposes of government. Also called body corporate.
Shumaila Saeed
Jan 05, 2024
Company
A partner or partners not specifically named in a firm's title
Lee Rogers and Company.
Shumaila Saeed
Jan 05, 2024
Corporation
A body corporate, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.
Shumaila Saeed
Jan 05, 2024
Company
A subdivision of a military regiment or battalion that constitutes the lowest administrative unit. It is usually under the command of a captain and is made up of at least two platoons.
Shumaila Saeed
Jan 05, 2024
Corporation
(historical) In Fascist Italy, a joint association of employers' and workers' representatives.
Shumaila Saeed
Jan 05, 2024
Corporation
A body politic or corporate, formed and authorized by law to act as a single person, and endowed by law with the capacity of succession; a society having the capacity of transacting business as an individual.
Shumaila Saeed
Jan 05, 2024
Corporation
A business firm whose articles of incorporation have been approved in some state
Shumaila Saeed
Jan 05, 2024
Company
A group of individuals who work together for a common purpose.
A company of actors.
Shumaila Saeed
Jan 05, 2024
Company
(military) A unit of approximately sixty to one hundred and twenty soldiers, typically consisting of two or three platoons and forming part of a battalion.
The boys in Company C
Shumaila Saeed
Jan 05, 2024
Company
A unit of firefighters and their equipment.
It took six companies to put out the fire.
Shumaila Saeed
Jan 05, 2024
Company
An intelligence service.
As he had worked for the CIA for over 30 years, he would soon take retirement from the company.
Shumaila Saeed
Jan 05, 2024
Company
(legal) An entity having legal personality, and thus able to own property and to sue and be sued in its own name; a corporation.
Shumaila Saeed
Jan 05, 2024
Company
(business) Any business, whether incorporated or not, that manufactures or sells products (also known as goods), or provides services as a commercial venture.
Shumaila Saeed
Jan 05, 2024
Company
(uncountable) Social visitors or companions.
Keep the house clean; I have company coming.
Shumaila Saeed
Jan 05, 2024
Company
The state of being a companion or companions; the act of accompanying; fellowship; companionship; society; friendly intercourse.
Evil company doth corrupt good manners.
Brethren, farewell: your company alongI will not wish.
Shumaila Saeed
Jan 05, 2024
Company
A companion or companions.
To thee and thy company I bidA hearty welcome.
Shumaila Saeed
Jan 05, 2024
Company
An assemblage or association of persons, either permanent or transient.
Thou shalt meet a company of prophets.
Shumaila Saeed
Jan 05, 2024
Company
Guests or visitors, in distinction from the members of a family; as, to invite company to dine.
Shumaila Saeed
Jan 05, 2024
Company
Society, in general; people assembled for social intercourse.
Nature has left every man a capacity of being agreeable, though not of shining in company.
Shumaila Saeed
Jan 05, 2024
Company
An association of persons for the purpose of carrying on some enterprise or business; a corporation; a firm; as, the East India Company; an insurance company; a joint-stock company.
Shumaila Saeed
Jan 05, 2024
Company
Partners in a firm whose names are not mentioned in its style or title; - often abbreviated in writing; as, Hottinguer & Co.
Shumaila Saeed
Jan 05, 2024
Company
A subdivision of a regiment of troops under the command of a captain, numbering in the United States (full strength) 100 men.
Shumaila Saeed
Jan 05, 2024
Company
The crew of a ship, including the officers; as, a whole ship's company.
Shumaila Saeed
Jan 05, 2024
Company
The body of actors employed in a theater or in the production of a play.
Shumaila Saeed
Jan 05, 2024
Company
An institution created to conduct business;
He only invests in large well-established companies
He started the company in his garage
Shumaila Saeed
Jan 05, 2024
Company
Organization of performers and associated personnel (especially theatrical);
The traveling company all stayed at the same hotel
Shumaila Saeed
Jan 05, 2024
Company
The state of being with someone;
He missed their company
He enjoyed the society of his friends
Shumaila Saeed
Jan 05, 2024
Company
A band of people associated temporarily in some activity;
They organized a party to search for food
The company of cooks walked into the kitchen
Shumaila Saeed
Jan 05, 2024
Company
A social gathering of guests or companions;
The house was filled with company when I arrived
Shumaila Saeed
Jan 05, 2024
Company
A social or business visitor;
The room was a mess because he hadn't expected company
Shumaila Saeed
Jan 05, 2024
Company
A unit of firefighters including their equipment;
A hook-and-ladder company
Shumaila Saeed
Jan 05, 2024
Company
Crew of a ship including the officers; the whole force or personnel of a ship
Shumaila Saeed
Jan 05, 2024
Company
A company is a business organization involved in commercial, industrial, or professional activities.
The company launched a new line of eco-friendly products.
Shumaila Saeed
Jan 09, 2024
Company
A company can be a sole proprietorship, partnership, or corporation.
Her catering service, a sole proprietorship, is her own company.
Shumaila Saeed
Jan 09, 2024
Company
A company's structure influences its operational dynamics and legal responsibilities.
The company restructured to improve efficiency and customer service.
Shumaila Saeed
Jan 09, 2024
Repeatedly Asked Queries
Can a company exist without being a corporation?
Yes, a company can be a sole proprietorship, partnership, or LLC, not just a corporation.
Shumaila Saeed
Jan 16, 2024
Is every corporation a company?
Yes, every corporation is a type of company.
Shumaila Saeed
Jan 16, 2024
Are shareholders in a corporation personally liable for debts?
No, shareholders in a corporation have limited liability.
Shumaila Saeed
Jan 16, 2024
What are the main advantages of forming a corporation?
Limited liability, access to capital markets, and potential tax benefits are some advantages of forming a corporation.
Shumaila Saeed
Jan 16, 2024
Are all corporations publicly traded?
No, not all corporations are publicly traded. Many are privately held and not listed on stock exchanges.
Shumaila Saeed
Jan 16, 2024
Can a corporation be dissolved or terminated?
Yes, a corporation can be dissolved or terminated through a formal legal process or bankruptcy.
Shumaila Saeed
Jan 16, 2024
What are the key characteristics of a company?
A company typically has a management structure, ownership structure, and conducts commercial activities.
Shumaila Saeed
Jan 16, 2024
What is a board of directors in a corporation?
The board of directors is a group of individuals elected by shareholders to oversee the company's management and make key decisions.
Shumaila Saeed
Jan 16, 2024
Can a company be a nonprofit organization?
Yes, there are nonprofit companies that are organized for charitable, educational, or other non-profitable purposes.
Shumaila Saeed
Jan 16, 2024
Can a company have multiple owners?
Yes, a company can have one or more owners, depending on its legal structure.
Shumaila Saeed
Jan 16, 2024
What is the role of a CEO in a corporation?
The CEO (Chief Executive Officer) is the highest-ranking executive responsible for the overall management and direction of the corporation.
Shumaila Saeed
Jan 16, 2024
What is the difference between a company and a business?
A company is a legal entity, while a business refers to the activities conducted by that entity.
Shumaila Saeed
Jan 16, 2024
What is the significance of a company's name?
A company's name is its legal identifier and is often registered with the appropriate government agency.
Shumaila Saeed
Jan 16, 2024
Is a company required to have a physical office or location?
Not necessarily. Some companies operate solely online or have virtual offices.
Shumaila Saeed
Jan 16, 2024
What is a subsidiary company?
A subsidiary company is a company that is controlled by another company, known as the parent company.
Shumaila Saeed
Jan 16, 2024
Can a company change its legal structure?
Yes, a company can change its legal structure through a formal process, such as converting from a partnership to a corporation.
Shumaila Saeed
Jan 16, 2024
Share this page
Link for your blog / website
HTML
Link to share via messenger
About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
Hifza Nasir
Shumaila Saeed
