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A form of organization, often called a “C-Corporation,” that exists as a legal entity and has centralized management, limited liability, transferable shares, and continuity of existence. A corporation is created as an artificial person, in accordance with law, and with the purpose of engaging in activities of a business nature. While a corporation exists separately from its owners, the shareholders, it has many of the same rights, abilities, and responsibilities as held by humans. A corporation can hire or discharge employees; enter into contracts; and have the right to own, sell, rent, or lease property. Furthermore, corporations are subject to risk, lawsuits, and income tax liabilities.
In comparison with other major forms of business ownership, such as sole proprietorship and partnerships, corporations are considered a more ...