A corporation is a legal entity whose investors purchase shares of stock as evidence of their ownership interest in it. This entity acts as a legal shield for its owners, so that they are generally not liable for the corporation's actions.
A corporation has most of the rights and obligations of an individual, such as being able to enter into contracts, hire employees, own assets, incur obligations, and pay taxes. It is organized under state law. The interests of shareholders are represented by a board of directors, which they elect.