18/9/17 What is a Company?
When you establish your business as a firm according to the laws of the country, it becomes a company. Company is more large scale than a business. Setting up a company is a costly affair. However, it is possible to structure it legally in such a manner that it will be seen as a separate entity than its owner. This is one point, which assumes significance when business suffers losses, or something else goes wrong. When it comes to debts, company has an advantage. When you have got the business registered as a company, you have a limited liability. As a result, in the case of losses and when you are not able to pay back the loans, debt remains the responsibility of the company, and creditors cannot touch your private possessions like your home or car. Also, if you are hoping to expand your business to more areas and become a big player then being a company is the best option.
In our e-Legal Lessons, we will analyze several types of business organizations, such as corporations, partnerships, and limited liability companies.