Corporation

Definition:

A legal entity, formed to govern all aspects of a business (income, expenses, legal requirements, etc.). Not all businesses are corporations, or “incorporated.” A corporation usually has to follow a different set of rules related to government and tax regulations.

Examples:

Corporations should pay higher taxes, because they enjoy more freedom to do business on a national scale.

Rather than a partnership, they decided to establish a limited liability corporation so that their group of family law lawyers would have the advantage of a lower tax bracket and better insurance coverage.