corporation

A corporation is a legal entity created by charter or registration that is distinct from its owners. It has legal personhood, can enter contracts, sue and be sued, own assets, and incur liabilities in its own name. In many jurisdictions, a corporation is formed by filing articles of incorporation with a government authority, adopting bylaws, and paying fees. The corporate name is protected, and the entity can have a perpetual existence beyond the lifespan of its founders.

Ownership is divided into shares that may be publicly traded or privately held. Shareholders enjoy limited liability for the corporation’s debts, secured by the corporate veil that separates personal assets from corporate obligations. Shares are transferable, enabling capital accumulation. Governance is typically structured with a board of directors elected by shareholders to set broad policies and appoint officers who manage day-to-day operations. Directors owe fiduciary duties of care and loyalty. Regular meetings and records are customary, especially for public companies, to satisfy regulatory and stakeholder expectations.

Taxation and regulation vary by jurisdiction. In many systems, corporations pay taxes on their profits, and dividends may be taxed again to shareholders (double taxation), though some regimes or structures (such as S corporations in the United States) provide pass-through taxation or other relief. Publicly traded corporations face additional regulatory requirements, including disclosure and governance standards. Corporations can be for-profit or non-profit; non-profit corporations pursue charitable or public purposes and may have tax-exempt status. Alternatives to corporations include partnerships and certain forms of limited liability entities.