Overview of Business Entities | 5 Legal And Organizational Forms and Structures

A business, or a company, is a legal entity (structure) defined by law. All companies are legal persons and liable for corporate income tax. Companies are structured based on liability. In a partnership, all or some partners are personally liable. In a company limited by shares, the company members or shareholders are not personally liable. All companies can be found by natural or legal persons (another company), domestic or foreign. A partnership is founded by at least two founders. A company limited by shares can be founded by one founder. An exception is a partnership limited by shares.