What is a corporation in business?

This is a business organization that exists as a separate entity from its owners, but the owners control its operations through the shares that they own in the entity. An important characteristic of corporations is that they limit the liability of the shareholders. Therefore, even though the shareholders share the entity's profits through stock appreciation and dividends, they cannot be held accountable for its debts and other liabilities. Even if the corporation becomes unsuccessful or is accountable for particular damages in a lawsuit, the shareholders would be unaffected, thus their personal assets would not be involved in corporate liabilities. Corporations face double taxation, whereby its income is taxed, as well as the shareholders' dividends.