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)