Companies and Partnerships

Companies and partnerships are two common forms of business structures. A company is a legal entity separate from its owners, allowing it to own property, enter contracts, and be liable for debts. It offers limited liability, meaning owners are not personally responsible for the company's obligations. Partnerships, on the other hand, involve two or more individuals sharing ownership and responsibilities. In a partnership, profits and losses are typically shared, and partners may be personally liable for the business's debts. Choosing between them involves considering factors like liability, taxation, and management style.