Private Company Definition
When most people think of a private company, they think of a small business. But the term ‘private company’ can refer to any size business that is not publicly traded on the stock market. Private companies are usually owned by a small group of people, and they don’t have to answer to shareholders like public companies do. This gives private companies more flexibility when it comes to making decisions about their business.
There are several types of private companies, including:
-Sole proprietorships: These are businesses that are owned and operated by one person.
-Partnerships: These are businesses that are owned by two or more people.
-Limited liability companies (LLCs): These businesses offer their owners some protection from being held personally liable for the company’s debts.
-S corporations: These businesses avoid double taxation (taxes being levied on both the business and its owners).
-C corporations: These are the most common type of corporation in the United States.
