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I need a clear explanation on the difference between the LocalBusiness Rich Snippet and the Organization Rich Snippet.

Is it ok to put both snippets in one site? When is it best to use each of these snippets?

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It seems to me that LocalBusiness is a more specific type of Organization. Especially if you look at the Schema.org page for Organization, it lists LocalBusiness as a "more specific" type of organization. A LocalBusiness has a physical location that people visit. A concert venue, a bowling alley, a theatre, etc. Keep in mind there is also a Corporation organization type.

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