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Business vs. Corporation: Understanding the Differences

8 Mar 2024 · 1 min

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Bob Gauvreau explains the difference between a business and a corporation. A business is any entity with sales and expenses to generate income, while a corporation is a specific legal form that creates a separate entity with its own identity, distinct from other business structures like sole proprietorships and partnerships.

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Okay, so let's talk about the difference between a business and a corporation. Really, a business is any form of entity that has active sales and expenses activity to generate income. Now, a corporation is a form of a business. It's a separate legal entity that has its own identity. And it is likely a business operation that's in there as long as there's sales and expenses to generate ongoing business activity. But a business could really be any form. It could be a sole proprietorship, it could be a partnership, or it could be a corporation. So when looking at different types of businesses, a corporation would fall within that category.