A corporation is a proper business organization with a publicly recorded charter recognizing it as a separate legal body with its own privilege and responsibilities discrete from those of its members. There are diverse types of corporations. Most of these types of corporations are used to run a business. Corporations subsist as a product of corporate law and their regulations stabilize the interests of the organization who control the corporation, stakeholders, creditors and employees who contribute their effort. An imperative trait of a corporation is the limited accountability. Supposing if a corporation fails, the shareholders in general only stand to lose their investment and workers will lose their jobs but none of them will be further liable for debts that stay behind owing to the corporation's creditors.
Despite the fact that corporations are not being natural persons, the corporations are distinguished by the law to have rights and liability like natural persons. Corporations can implement human rights versus real persons and the state and they are frequently accountable for human rights infringements. Just as the way they come into existence they can also be dissolved either by legal operations, order of a court or intended action on the part of shareholders. Insolvency may perhaps end up in a form of corporate death when creditors oblige the liquidation and termination of the corporation under a court order but it most frequently results in a reorganization of the corporate holdings.
Corporations can be commonly differentiated into 5 types namely General Corporation, S-Corporations, C-Corporations, Limited Liability Corporation (LLC) and Limited Liability Partnership (LLP). They are briefed as follows: