Legal Definition Of Corporation6 min read

What is a Corporation?

A corporation is a legal entity created by the state that has certain rights and responsibilities. It is usually a business, but can also be a government or non-profit organization. A corporation is separate from its owners and is managed by a board of directors.

What is the Legal Definition of a Corporation?

The legal definition of a corporation is a company or organization that is recognized as a separate legal entity from its owners. It is usually a business, but can also be a government or non-profit organization. A corporation is managed by a board of directors, and is responsible for its own debts and obligations.

What is the best definition of corporation?

There are many different definitions of a corporation, but most would agree that it is a legal entity created by the state that allows a group of people to act as a single entity for the purpose of conducting business. A corporation can have many shareholders, and the shareholders are not personally liable for the debts of the corporation.

What makes a corporation a corporation?

What makes a corporation a corporation? 

There are a few key factors that make a corporation a corporation. The first is that a corporation is a legal entity, meaning it is recognized as a separate and distinct legal entity from the individuals who own it. This means that a corporation can enter into contracts, own property, and sue and be sued in its own name. 

The second key factor is that a corporation is a shareholders’ company. This means that the corporation is owned by shareholders, who own shares in the company. The shareholders elect a board of directors to oversee the company’s operations and make decisions on behalf of the shareholders. 

The third key factor is that a corporation has limited liability. This means that the shareholders are only liable for the amount of money they have invested in the company. This protects the shareholders from being liable for the company’s debts and liabilities. 

A corporation is also required to have a board of directors, shareholders, and a corporate name.

What are two definitions of corporation?

There are two main definitions of a corporation: the legal definition and the economic definition.

The legal definition of a corporation is a business entity that is separate and distinct from its owners. It is a legal person that can own assets, sue and be sued, and enter into contracts. Corporations are created by state law and are regulated by the state.

The economic definition of a corporation is a business entity that is owned by shareholders. The shareholders own the corporation and its assets, and are entitled to the profits generated by the corporation. The shareholders elect a board of directors who are responsible for managing the corporation.

What is the difference between a company and a corporation?

A company and a corporation are both types of businesses, but there are some key differences between them. A company is a type of unincorporated business, while a corporation is a type of incorporated business.

The main difference between a company and a corporation is that a company is a type of unincorporated business, while a corporation is a type of incorporated business. This means that a company is not a separate legal entity from its owners, while a corporation is. This is important because it means that the owners of a company are personally liable for the company’s debts, while the owners of a corporation are not.

Another key difference between a company and a corporation is that a company is not subject to corporate income tax, while a corporation is. This means that the profits of a company are taxed at the individual level, while the profits of a corporation are taxed at the corporate level.

Finally, a company can have an unlimited number of shareholders, while a corporation can have only 50 shareholders.

What are the 4 types of corporations?

There are four types of corporations: C-corporations, S-corporations, limited liability companies (LLCs), and limited partnerships (LPs).

C-corporations are the most common type of corporation and are subject to federal income taxes. They are created by filing articles of incorporation with the state.

S-corporations are similar to C-corporations, but owners of S-corps are exempt from federal income taxes on their share of the corporation’s income. To qualify as an S-corp, the corporation must meet certain requirements, including having less than 100 shareholders.

LLCs are hybrid entities that combine the features of a corporation and a partnership. They are not subject to federal income taxes, but owners are subject to self-employment taxes on their share of the LLC’s income.

LPs are similar to LLCs, but have more limited liability. Owners of LPs are not subject to self-employment taxes.

What is definition and example of corporation?

A corporation is a type of business entity that is separate and distinct from its owners. Corporations are created under the law, and they have certain legal rights and responsibilities that are not available to other types of businesses.

One of the most important features of a corporation is that it is a separate legal entity. This means that the corporation is responsible for its own debts and obligations, and the owners (called shareholders) are not personally liable. This can be a very important protection for the shareholders, since it means that they are not responsible for the debts of the corporation.

A corporation is also a taxable entity, meaning that it is subject to income taxes. The taxes are paid by the corporation, not the shareholders.

There are a number of other features that are unique to corporations, such as the ability to issue shares of stock. Shareholders can own shares in a corporation, and the value of the shares will depend on the fortunes of the company.

Corporations are common in the business world, and there are a number of regulations that apply to them. For example, corporations must file annual reports with the state and federal governments, and they must also comply with various regulations related to taxation, employment, and securities.

There are a number of different types of corporations, including C-corporations and S-corporations. The type of corporation will depend on the state in which it is located.

The definition of a corporation can vary from state to state, but the general characteristics are the same. A corporation is a separate legal entity, it is taxable, and it can issue shares of stock.

What are the 4 attributes of a corporation?

There are four basic attributes of a corporation, which are set forth in the Delaware General Corporation Law. These are:

1. Separate legal existence – A corporation has a separate legal existence from its owners, and can enter into contracts, own property, and sue and be sued in its own name.

2. Limited liability – Shareholders of a corporation are typically only liable for the amount of their investment in the company. This limits the risk they face if the company is sued or goes bankrupt.

3. Transferability of ownership – Shares of a corporation can be transferred to others, subject to the corporation’s bylaws.

4. Continuity of existence – A corporation will continue to exist even if its owners die or sell their shares, unless it is liquidated.