Business v/s Company
You might be wondering why I’m writing on this topic. Isn’t a business and a company the same thing? You would have heard these terms being used interchangeably on many occasions. And more often than not they are misunderstood.
While there are many things in common for both, a business and a company, there are some differences as well. But worry not! By the end of this blog, you will get a clear understanding of the difference between a business and a company.
So, I’ll keep this one short and walk you through the similarities and differences between the two.
Business
A Business is an individual or organization that provides its product or services to the consumer. It usually conducts trade operations with its trade name or owner’s name itself.
It is the owner(s) who is liable for all the debts suffered by the business. The owner(s) is the one responsible for paying taxes to the government as well. The tax paid is also less compared to that of companies.
The main advantage of a business is to get started with your initial idea and launch your business with much less hassle of completing the costly formalities.
Company
A Company exists as a separate legal entity that provides its services to its customers.
It has all the rights and responsibilities, like that of a person. It can pay taxes, hire employees, commit to contracts, etc. This is why it is also known as “corporate personhood”.
In case of debt incurred by the company, the founder is guarded by the limited liability of personal possessions. (went over your head? 😅 Refer to my previous blog!)
Starting a company is a more complicated process than a business as it is more legally involved. It will involve deciding the structure of the company along with the company name, and share split. But this is done in order to give it more credibility. This results in more businesses dealing with you comfortably.
