A company is a legal entity formed by a group of people to engage in business activities. It represents an association of individuals with a specific objective, and its members share a common purpose to achieve specific, declared goals. Companies can take various forms, such as voluntary associations, business entities, financial entities, and educational institutions. They can be organized in various ways for tax and financial liability purposes, including partnerships, proprietorships, and corporations. A company is essentially an artificial person, separate from the individuals who own, manage, and support its operations. It can be structured to earn a profit from business activities or be organized as a nonprofit charity. Companies may also be distinguished between private and public companies, each with different ownership structures, regulations, and financial reporting requirements
. A corporation, on the other hand, is a specific type of company that is a legal entity separate and distinct from its owners. It possesses many of the same rights and responsibilities as individuals and has the distinguishing characteristic of limited liability. Shareholders of a corporation are not personally liable for the company's debts. Corporations may be created by a group of shareholders with a common goal who share ownership represented by their holding of stock shares. They can return a profit to their shareholders, and some may operate as nonprofit or not-for-profit organizations. Corporations are regulated by state and federal laws and may be publicly traded or privately held
. In summary, a company is a broad term referring to a legal entity formed by a group of individuals to engage in business, while a corporation is a specific type of company with distinct legal characteristics, including limited liability for its shareholders
