DEFINITION

• A corporation is a legal entity created by or under the authority of the laws of a state. The law treats a corporation as a person that can sue or be sued. A corporation is distinct from the individuals who own stock in the company. These individuals are called shareholders.

• When a corporation is formed, state statutes require that the corporation be given a name that is kept on record at the Secretary of State's office. Only by such name may the corporation sue, be sued or conduct all other legal acts.

• The law recognizes different types of corporations, such as close corporations, S corporations, nonprofit corporations and professional corporations.

• Corporate Law refers to the type of law that corporate attorneys practice. A Corporate Law practice encompasses mostly civil business law, such as contracts, negotiation, intellectual property and employment law.

FIND A CORPORATE LAWYER IN YOUR AREA.

More information on CORPORATIONS and BUSINESS ORGANIZATIONS.

RELATED PRACTICE AREAS

Business & Commercial Law
Real Estate Law
Personal Injury -- Defense
Worker's Compensation Law

BUZZWORDS

Close Corporation - A corporation whose shares are held by a single shareholder or a closely knit group of shareholders. Generally, there are no public investors. The shareholders are active in the conduct of the business. This type of corporation is also referred to as a closely held corporation.

Intellectual Property - A wide variety of property created by musicians, authors, artists and inventors. The federal law of intellectual property encompasses the areas of copyright, patent and trademark laws.

Nonprofit Corporation - A corporation formed for some charitable or benevolent purpose and not for profit. Such corporations are afforded special tax treatment.

Piercing the Corporate Veil - The judicial act of imposing personal liability on otherwise immune corporate officers, directors and shareholders for a corporation's fraudulent or wrongful acts.

Professional Corporation - A corporation that renders a service that requires a license or other legal authorization. Such professionals as attorneys, physicians and accountants may do business as a P.C. Incorporation does not alter professional responsibility, nor does it insulate the principals from malpractice liability.

S Corporation - A small business corporation with a limited number of shareholders. Its major significance is the fact that an S corporation usually avoids corporate income tax. Corporate losses can be claimed by the shareholders.

Secretary of State's Office - In most states, the official office responsible for many types of formal state business, such as licensing of corporations and filing of UCC security agreements.

Shareholders - A person who owns stock in a corporation with certain legal rights attached.