Tag: Business

Business

Business is the practice of making one’s living or making money by producing or buying and selling products (such as goods and services) and “any activity or enterprise entered into for profit.”

Owner’s responsibility

Having a business name does not separate the entity from the owner, which means that the owner is responsible and liable for debts incurred by the business. If it acquires debts, the creditors can go after the owner’s personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from it.

Company

The term is also often used colloquially to refer to a company, such as a corporation or cooperative. Corporations, 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.

A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members.

Entities

It is an entity that is formed and administered as per corporate law in order to engage in business activities, charitable work, or other activities allowable. Most often, these entities are formed to sell a product or a service. There are many types of entities defined in the legal systems of various countries.

These include corporations, cooperatives, partnerships, sole traders,  limited liability companies and other specifically permitted and labelled types of entities. The specific rules vary by country and by state or province. Some of these types are listed here, by countries.