Category: Business

Business is the activity of earning a living or making money by producing, purchasing, and selling goods (such as goods and services). Simply put, it is “any profit-making activity or enterprise.”

Having a business name does not separate the business entity from the owner, which means that the owner is responsible and liable for the business’s debts. If the company incurs debts, the creditors have the right to seize the owner’s personal belongings. Corporate tax rates are not permitted in a business structure. The proprietor is personally taxed on all business income.

The term is also commonly used colloquially to refer to a company (but not by lawyers or public officials). A company, on the other hand, is a separate legal entity with limited liability and corporate tax rates. A company structure is more complicated and costly to set up, but it provides greater protection and benefits to the owner.