A corporation is a legal entity separate from its owners who have limited liability for the corporation's obligations.

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A corporation is a separate legal entity from its owners, often referred to as shareholders. This means that the corporation can enter into contracts, own property, sue and be sued, and conduct business activities in its own name. Shareholders have limited liability for the corporation's debts and obligations, meaning that their personal assets are protected from creditors of the corporation.

A Corporation Is a Legal Entity Separate from Its Owners