What is a Corporation?
A corporation is a term used in the US to mean a separate legal entity which a person can set up to run a business. In the UK the word company is sometimes used instead of corporation.
The shareholders of the corporation have limited liability in the event of failure of the business, but have a right to share in the profits by way of dividend payments.
The corporation is managed by a board of directors who are appointed by the shareholders.
In the US, there are various corporation types, a C corporation is a corporation which is is taxed separately from the owners, whereas an S corporation is generally not taxed separately
For further information see the Wikipedia corporation definition.
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