00:04do you think a company and a corporation are the same thing think again many people
00:11even business students use these words interchangeably but in reality the
00:16differences between them could change how you build a business protect your
00:21assets or even pay your taxes in today's video we'll break down the key
00:27differences between a company and a corporation with real-world examples and
00:33references that even Harvard professors would approve of stay with me till the
00:38end because difference number dance might surprise you
00:48a company is any business entity formed to make profit it could be a sole
00:54proprietorship partnership LLC or even a corporation but a corporation is a very
01:01specific type of company recognized by law as a separate legal person think of it
01:08this way every corporation is a company but not every company qualifies as a
01:26corporation
01:27a corporation has its own legal identity it can own property enter contracts sue and
01:35be sued a regular company like a sole proprietorship does not have this
01:40separation the business and honor are one for example if John's bakery is sued as
01:48a sole proprietorship John himself is sued but if it's John's bakery INC the
01:57corporation takes the hit not John's personal assets
02:14corporation's offer limited liability shareholders only risk the money they
02:19invest other company forms such as partnerships often carry on limited
02:25liability owners may lose personal assets if debts aren't paid
02:43a company can be owned by one or multiple individuals but in a corporation
02:49ownership is divided into shares of stock making it easy to buy sell or
02:55transfer for example Apple INC has millions of shareholders but a small family
03:03business may have only two partners
03:18business in many companies owners directly manage operations in corporations
03:24there is a separation of ownership and control shareholders elect a board of
03:30directors and the board appoints executives to run daily operations
03:43companies
03:44well viewers if you didn't subscribe to our channel yet please subscribe now
03:55forming a company like a party shape is simple sometimes just a handshake
04:01agreement corporations required full formal incorporation including filing
04:06articles of incorporation paying fees and following state or national laws
04:25corporations open fees double taxation first on profits and then again when
04:32dividends are distributed to shareholders by contrast many companies like LLCs or
04:39partnerships are passed through entities taxed only once
04:56a corporation enjoys perpetual succession it survives even if shareholders die or sell their shares
05:05other companies may dissolve when an owner exits
05:21corporations can raise massive capital by issuing shares and bonds
05:26smaller companies usually depend on personal savings bank loans or private investors
05:45corporations face heavy regulation annual reports shareholder meetings audits and disclosure requirements
05:55companies like partnerships or small LLCs often have lighter compliance burdens
06:01companies for example public corporations in the u.s. must comply with these surveys
06:07obviously act
06:09two thousand day but a small consulting partnership only files basic taxes
06:28so what's the takeaway a corporation is a powerful structured and highly regulated form of a company
06:36with advantages like limited liability and access to huge capital but also with heavier compliance costs
06:45perhaps if you're planning to start a business the choice between a simple company structure
06:50and a full-fledged corporation could decide your success or your failure
06:54which do you think is better for entrepreneurs a small company or a large corporation
07:02comment below I'd love to hear your thoughts and if you found this breakdown useful
07:08don't forget to hit like subscribe for more business insights and share this video with anyone who's
07:15thinking about starting a business remember knowledge is your best investment until next time
07:22stay smart stay informed and keep building your future
