Corporation vs. Company

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In the United States, a corporation is a form of doing business in which the liability of shareholders (i.e. the owners of the corporation) for the corporation’s liabilities is limited to the extent of the holding of shares.

In Great Britain, a company is a form of doing business in which the liability of members (i.e. the owners of the company) for the company’s liabilities is limited to the extent of the holding of shares.

In the United States, a company is a generic term for a legal entity conducting business. Thus, it can refer to a sole proprietorship (called a sole trader in the UK), a partnership, a limited partnership, or any other type of business entity.