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Business is the action of making a living or earning money through the production, purchase, and sale of goods and services. In plain English, it is “any activity or enterprise that is intended to make profit.” The term is often used informally when referring to a firm (although not by attorneys or government officials).

A company, on the other hand, is a distinct legal entity with restricted liability and corporate tax rates, which are not subject to the same regulatory requirements. A company structure is more difficult and expensive to set up, but it provides the owner with additional security and benefits.