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Should a blog be hosted on your domain, or on a subdomain?
Its about you choice,you can even host in main domain and then link it from home page.
You could use your blog on your main domain or create a subdomain for your blog and use the main domain as the company website, the choice is yours. Search engines treat subdomains as the independent site, for example mysite.wordpress.com and wordpress.com are treated as the different site.