An entity that is separate legally from its owners. This is often called a "legal person" since it has many of the same rights as individuals.
It can:
- hire employees
- enter into contracts
- loan and borrow money
- pay taxes
- engage in litigation, both as the plaintiff and defendant
- own assets
Corporations have different liability protections as well as taxation. The other forms of business structures are sole proprietorship and partnerships.
Some corporations are able to sell stock, either through public or private offerings. These are known as "stock corporations". Ones that are public have the ability to access the equities and debt markets (bonds).