What is a corporation?
A corporation is a separate legal entity that is usually formed to conduct business. Over the past century corporations have become a dominant part of economic life, having absorbed or eliminated the smaller businesses in their fields of interest.
The most important feature of a corporation, is that the corporation has legal independence from them. If a corporation fails the creators lose nothing but their investments while a person operating a sole proprietorship or operating as part of a partnership can be held either fully responsible, or responsible for a share equal to their stake in the partnership, for all debts and other liabilities. This limited liability is the key feature of any corporation.