Business

Business is the practice of making one’s living or making money by producing or buying and selling products. It is also “any activity or enterprise entered into for profit”.

Having a business name does not separate the entity from the owner, which means that the owner is responsible and liable for debts incurred. If it acquires debts, the creditors can go after the owner’s possessions. The taxation system for businesses is different from that of the corporates. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.

The term is also often used colloquially (but not by lawyers or public officials) to refer to a company, such as a corporation or cooperative.

Corporations, in contrast with sole proprietors and partnerships, are separate legal entities and provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complicated and expensive to set up but offers more protection and benefits for the owners/members.