A legal entity formed that has a different legal indentity from its members is called a company. Companies are usually formed for small business, public investment, or non-profit reasons. Small businesses are mostly comprised of sole traders who are limited in liability, but still controlled by the founders of the company. Public Investment companies are created so that the pubic may invest in the business without administration. Public investment companies are usually amdinistrated by a board of directors. Non-Profit companies are formed for social, charitable, or virtually charitable reasons so that the sponsors are not complete liability.