What is a corporation and why form one?
A corporation is a business entity that is separate and distinct from its owners. It can enter contracts and sue and be sued without involving its owners. Usually, corporations are formed to own and operate a business or hold property.
The most important reason corporations are used for businesses are to limit the liability of the owner (shareholders) and to separate management from ownership. As a result, company founders can manage the business even if they do not own all of it.