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”.