Corporation Definition
A company legally created under the authority of the laws of a state. The company exists as a separate and distinct entity from its owners and employees. The company, like a person, conducts activities necessary for business. These activities include, but are not limited to, the following:
Enter into contracts
Sue and be sued
Pay taxes
NOTE Once formed, a corporation continues to exist as a separate entity even when owners die or sell their shares.
(For policy regarding income received from a corporation see S Corporation, Corporation Profits, Wages, and Limited Liability Corporation)