The word “corporation” is derived from a Latin phrase, “corpus”, which means “a body corporate.” A corporation is a legal entity consisting of members acting as one corporation for the purpose of conducting business. Early incorporated businesses were set up by charter.
In our present world, corporations have many uses. They are also sometimes used to form investment and insurance corporations. Some corporations engage in buying companies or investing in them and then re-sold later to create huge profits. Other corporations use their capital to finance larger operations, buy land or develop the land, and build houses, etc., and then lease the property to others. Corporations can also make their own rules regarding conduct of business and the ownership and transfer of stock. However, most corporations are governed by boards of directors, who are elected or appointed for a limited period of time.
There are several different types of corporations, with differing purposes and structure. For instance, a partnership is a sort of combination between a partnership and a corporation. A corporation is a separate legal entity from its shareholders. In all types of corporations, however, there are shareholders and therefore, a company is considered to be a company for the purpose of its taxes. All corporations have profits and losses, and these profits and losses are divided between the shareholders and the directors of the corporation in order for the company to pay its taxes.