What is Business Corporation?
A business corporation is a commercial, limited liability entity that has a separate legal personality from its members. It is owned by multiple shareholders and is supervised by a board of directors. They also hire the business’s administrative staff. Each individual shareholder owns a certain amount of the equity of the company. Some may own equal shares, some may own majority shares, other may own minority shares, but when combined they comprise the totality of ownership of the business.
The majority of the shareholder’s agreement needs to be procured before moving forward, when it comes to certain business decision. The shareholders are protected from the dangers of personal liability if any legal action is taken against the company. So there is no risk of one’s personal wealth, savings and property in corporate business as in sole proprietorship. Corporative business is effectively perpetually prolonging its existence. It will subsist long after its owners because of transferable shares.