Corporation

A Corporation is a business that is organized as a separate legal entity from the owners of the corporation.  Ownership of a corporation is usually determined through shares of common stock issued by the company.  Since stockholders are free to sell or purchase additional shares in the corporation, this adds to the attractiveness for investors.

Corporations are created by filing a corporate charter with a state.  Once the new corporation has been approved by the state, it is a legal entity that is separate from its owners.  This limits the responsibilities of the owners for the liabilities of the corporation.