A business is generally defined as any entity or person engaging in business activities. Broadly speaking, businesses are for-profit or non-profitable organizations that conduct business to meet a social objective or further an artistic purpose. There are also nonprofit businesses which do not earn profit but perform an important social function such as providing a public service or educating the public.
There are many different types of businesses including sole proprietorships, partnership, LLC, partnership, corporation, limited liability company, and business corporations. Examples of sole proprietorships include private individuals and groups owning and conducting businesses independently. Examples of partnerships include business establishments run by corporations or organized labor. And, most commonly, business corporations are corporations that have numerous shareholders.
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Business corporations are different from partnerships in that corporations are formed by one or more shareholders with the goal of achieving a financial objective. One notable distinction between a partnership and a corporation is the fact that corporations are required to provide a general statement of information to the public. Generally, business corporations are operated for the benefit of their shareholders. Business corporations are distinguished from limited liability companies or LLCs by the fact that the C corporation does not have the right to unlimited liability. In addition, all members of a partnership must have direct or indirect liability for the actions of the partnership.