A corporation is a legal entity that is separate from its owners, known as shareholders. It can own property, enter contracts, and be sued in its own name. Corporations are created under state laws and can be either for-profit or non-profit. They often have a structured management system, including a board of directors that makes major decisions. One key feature of corporations is limited liability, which protects shareholders from being personally responsible for the corporation's debts. This means that if a corporation faces financial trouble, the personal assets of its shareholders are generally safe. Corporations can raise capital by selling shares, making them a popular choice for large businesses.