A corporation is a legal entity, created by state law with all the rights, privileges and reponsibilities of a natural person. This allows the corporation to do business like a person but because it has limited liability the owner or owners (stockholders) can lose no more than their investment in the corporation (the value of the stock).

Further, centralized management by an elected board of directors, and ease of transferability of interest allow for continuity of life. By simply buying, selling or in any way transfering the stock the owners may change while the corporation continues to exist.