## Equity Compensation

### Definition
A **company** is a legal entity formed under corporate law for the purpose of conducting trade. In the United States, specific rules and regulations govern several kinds of [business entities](https://en.wikipedia.org/wiki/Types_of_business_entity#United_States). Federal and state law have significant implications on liability and taxation for each kind of company. Notable types of companies include sole proprietorships, partnerships, limited liability companies (LLCs), S corporations, and [C corporations](https://www.holloway.com/definitions/c-corporation-or-c-corp).

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