What's the difference between a studio and a company? Why!

Main differences:

Purpose of establishment. The studio is not necessarily for profit; The company is a profit-making legal person.

Organizational form. The general organizational forms of the studio are individual industrial and commercial households, sole proprietorship enterprises, partnership enterprises and private non-enterprise units. , and the organization forms are diverse; The organizational forms of the company are limited companies and joint-stock companies.

Responsibility. Studio investors bear unlimited liability for the debts of the studio; Shareholders of the company shall be liable for the debts of the company to the extent of their subscribed capital contribution.

Registration agency. There are many registration agencies in the studio. For example, psychological counseling studios need to be registered by the Science and Technology Commission, and most of them are still in the market supervision and management department. The company's registration agency can only be the market supervision and management department.

The applicable laws for establishment are different. Studios are generally established according to the Regulations on Individual Industrial and Commercial Households, the Law on Sole proprietorship and the Law on Partnership. The basis for the establishment of the company is the Company Law.

Taxes are different. Generally speaking, studios do not need to pay corporate income tax, but companies do not.

Others. It's not very important, so I won't list them one by one.

There are various reasons, nothing more than the following:

Investment business needs to be invested;

Establishment and operation costs;

Tax policy;

Investors' preferences.