Business is the activity of making one’s living or making money by producing or buying and selling products (goods and services).Simply put, it is „any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors.“[5] The term is also often used colloquially (but not by lawyers or public officials) to refer to a company, but this article will not deal with that sense of the word.
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Anyone carrying on an activity that earns them a profit is doing business or running a business, and perhaps this is why there is a misconception that business and company is the same thing.
A business name structure does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for all debts incurred by the business. If the business acquires debts[,] the creditor or creditors can go after your personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
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