Corporations

Corporation

Corporation

A corporation is an artificial person that is created by governmental action.  A corporation exists in the eyes of the law as a person, separate and distinct from the persons who own the corporation (stockholders).  This means that the property of a corporation is not owned by the stockholders, but by the corpora­tion.  In addition, debts of the corporation are debts of this artificial person, and not of the persons running the corporation or owning shares of stock in it.  A corporation can sue and be sued in its own name.  Shareholders cannot normally be sued for corporate liabilities.

A corporation is a  company that has been formally incorporated according to the laws of a particular state.  Corporations can be either profit-making companies or non-profit entities.  Tax-exempt non-profit corporations are often called “501(c)3 corporation”.


Inside Corporations