Definition: A legal entity formed under statute and separate from its owners, usually with ownership represented by shares and management through directors and officers.
Example
Investors form a corporation to operate a business and hold assets in the corporation's name.
Keep the distinction clear
A corporation can have one shareholder. Separate existence and limited liability do not eliminate personal guarantees, liability for one's own wrongdoing, or professional licensing requirements.
Related terms
Limited Liability Company (LLC) · Sole Proprietorship · Registration
Keep studying
Corporation Sole, Sole Proprietorship, and Single-Owner Businesses
References: SBA: choosing a business structure · IRS: business structures · Florida Statutes 475.15: brokerage registration
Pronunciation (US): kor-puh-RAY-shun (capitals show stress)
Pronunciation reference: Merriam-Webster
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