A de facto corporation is accorded legal recognition despite some recognized defect in its incorporation.

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A de facto corporation is one that has acted as a corporation, but has not followed all the necessary legal steps to incorporate. Despite this defect in incorporation, some courts may recognize the corporation as legally valid due to its actions and the belief of others that it is a corporation. This is known as recognizing the corporation as a de facto corporation.

A De Facto Corporation Is Accorded Legal Recognition Despite Some