A company is a legal organization founded by a group of people to engage in and operate a commercial or industrial business. Depending on the corporate legislation of the country, a company can be constituted in a variety of ways for tax and financial liability purposes. The type of business structure incorporated in a company plan chooses, such as a partnership, sole proprietorship, or corporation, is usually determined by the line of business it operates in. These structures also represent the company's ownership structure. They can also be divided into private and public businesses. Ownership structures, regulations, and financial reporting requirements are all distinct. Companies are often set up to make a profit from their operations (e.g., IT companies), while some may be set up as non-profit organizations. Each country has its own corporation and corporate structure hierarchy, yet there are many commonalities. Income diversification, a high correlation between effort and return, creative freedom, and flexibility are all advantages of starting a company.
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