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A company is an entity that's separate from its homeowners with its personal legal rights. An organization structured as a company can sue, be sued, own property, and promote its possession in the type of stocks. C companies - Owned by shareholders, they allow an infinite variety of buyers and are taxed as separate entities. A startup might make more sense for individuals who consider they will build a better mousetrap and want the liberty of entrepreneurship. Study More Franchise vs. Should I finance my enterprise with fairness or go into debt? Start-up small businesses might use equity financing or debt financing to acquire cash when they are money poor. With debt financing, the lender has no management over your enterprise.

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