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Commonly Asked Questions about Corporation to Individual Legal Forms

Southern Pacific Railroad Co., 86 the Court held that the Fourteenth Amendment protected corporations because corporations are merely associations of individuals united for a special purpose individuals whose rights would be infringed if the Court denied the corporations the amendments protections (p. 155).
Because corporations have a separate identity from their organizers and investors, they can own property, enter into contracts, sue and be sued, and exist in perpetuity. Allowing corporations to conduct business activities as a legal person encourages investment and helps drive economic growth.
Interestingly, while the Court has concluded that corporations are persons within the meaning of the Equal Protection Clause of the Fourteenth Amendment, the Court has been quite reticent to concede that corporations are citizens for the purpose of the Privileges and Immunities Clause.
The three major forms of business in the United States are sole proprietorships, partnerships, and corporations. Each form has implications for how individuals are taxed and resources are managed and deployed.
A corporation, sometimes called a C corp, is a legal entity thats separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures.
The concept of legal personhood is especially popular in business law, where business organizations like corporations, partnerships, and limited liability companies possess legal personhood. As a result, these statutorily created entities are able to be treated as legally distinct from their shareholders and officers.