Word Origin late Middle English: from late Latin corporatio(n-), from Latin corporare ‘combine in one body’ (see corporate). Corporation definition, an association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members. British Broadcasting Corporation. A corporation is a legal entity that is separate and distinct from its owners.
Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts. Firm that meets certain legal requirements to be recognized as having a legal existence, as an entity separate and distinct from its owners.
The corporation is liable for the actions and finances of the business – the shareholders are not. Corporations can be for-profit, as businesses are, or not-for-profit, as charitable organizations typically are.