What is a corporation?
A corporation is a business entity that is independent and separate from the people who own and control it.
Characteristics:
• Owners of the corporation have limited liability. This means that the owners are not personally liable for the corporation’s debts, except in certain circumstances.
• Tax laws view corporations as a legal “person.” This means corporations may enter into contracts, sue or be sued, incur debts, and pay taxes.
• Corporations can own property.
• Corporations can own and operate businesses.
