Corporation vs. Company

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.

Jonathan Bryce, LL.B Born: London, England. Bachelor’s degree in Law with French, Sussex University, England, 1996; Diplôme D’Etudes Européennes, Toulouse, France, 1995. Trainee Solicitor and Solicitor at the London and Brussels offices of Allen & Overy, an international commercial law firm, 1999-2005, including secondments at the Stockholm offices of Swedish commercial law firms Gernandt & Danielsson and Vinge. LANGUAGES: ENGLISH, SWEDISH, FRENCH

This Post Has 3 Comments

  1. Stephen Roy

    I have multiple small business adventures which I hope to pursue in the near future. I am wondering if I should register each of them separately as sole proprietorship. Each company wold be doing something really different so I can’t hold all business done under one name. I was wondering how corporations worked when they have multiple companies that operate under them. I have heard it called holding companies before. Could you help me distinguish between the 2 options.

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