There are several types of companies, each serving different purposes and structures. The most common types include sole proprietorships, where one individual owns and operates the business, and partnerships, which involve two or more people sharing ownership. Corporations are larger entities that are legally separate from their owners, providing limited liability protection. Another type is the limited liability company (LLC), which combines features of both corporations and partnerships, offering flexibility and protection. Additionally, there are nonprofit organizations that operate for charitable purposes rather than profit. Each type has its own legal requirements and tax implications.