CORPORATION (NOT LRH)

a legal entity formed by a group of persons who have obtained a charter to engage in a profit or nonprofit business under a distinct corporate name. A corporation has legal rights and privileges separate and distinct from its owners. Primary among these is that a corporation's owners enjoy a limited liability to the corporation's creditors if a financial disaster occurs. Only the assets each owner has invested in a corporation are subject to a creditor's claims. An individual's personal assets are generally secure from the claims of a corporation's creditors because a corporation is an entity legally distinct from its owners as individuals.