Glossary Terms

Corporation

A corporation is a company or a group of people who are legally authorized to act as an individual entity.

A corporation is a company or a group of people who are legally authorized to act as an individual entity.

Corporations are a legal entity considered separate and distinct from their shareholders. Corporations can enter into contracts, borrow money, sue and be sued, pay taxes, own assets, and hire employees.

Of particular note, corporations provide shareholders with limited liability, which means they can enjoy the profits of the corporation, but are not held liable for the corporation’s debts.