A 'company' is another structure through which business can be conducted. It is basically a collection of people brought together for business, and managed by at least one director. In fact, when discussing companies in the business context, people generally are actually referring to corporations. A corporation is a company that has been incorporated.
Incorporation makes the company a separate legal entity.
This is a most significant feature of corporations, and one of the primary reasons why many people choose to conduct business through a corporation. For the sake of convenience, the terms company and corporation will be used interchangeably throughout this material, but one ought to be aware of the technical difference. Unlike a partnership, for example, a corporation is a 'separate legal entity'. It has a legal personality separate from the people who own it and run it. Consequently, a company can own property, has to pay tax, and can sue and be sued.