Corporations are entities that act as a single fictitious person. Like a real person, a corporation can sue, be sued, lend, and borrow. A corporation is a legal entity that is independent and distinct from its owners. Under the law, corporations have many of the same rights and responsibilities as individuals.
They can enter into contracts, lend and borrow money, sue and be sued, hire employees, own assets, and pay taxes. A corporation is a legal entity created under state law, usually for the purpose of conducting business. The law treats a corporation as a person who can sue or be sued. A corporation is independent of its individual owners, or shareholders, who own shares in the company.
A corporation is a legal entity created by individuals, shareholders or shareholders, for the purpose of operating for profit. Corporations can enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions. The precise legal definition of a corporation differs from one jurisdiction to another, but the most important characteristic of the corporation is always limited liability. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal counsel relationship.
A corporation is a legal entity created through the laws of its state of incorporation, which treats a corporation as a legal person that has the right to sue and be sued, unlike its shareholders. If you or your company is facing a corporate law problem, contact a corporate lawyer right away to explore your legal options. The onboarding process gives the business entity a distinctive feature that protects its owners from being personally liable in the event of a lawsuit or lawsuit. Both the corporation and the limited liability company (LLC) offer similar legal advantages and protections to their owners.
In addition to these unique corporate law issues, corporations also face all of the legal issues that other companies face. Smaller corporations can hire a single lawyer with extensive experience to handle all of the corporation's legal matters. Creating a corporation involves a legal process called a constitution in which legal documents are drafted that contain the primary purpose of the company, the name and location, and the number of shares and types of shares issued.