Corporation explained to kids

A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. A corporation is separate from its owners, and has many of the same rights and responsibilities as an individual. These include the right to enter into contracts, to sue and be sued, and to own property. The main difference between a corporation and an individual is that a corporation can exist indefinitely, even if its owners die or leave. The first corporations were created in the 1600s, and they have since become an important part of the economy. Corporations can be small, with only a few employees, or large, with tens of thousands of employees. They can be publicly traded on stock exchanges, or privately owned. There are several types of corporations, including C corporations, S corporations, and LLCs. Each type has its own advantages and disadvantages. For example, C corporations are taxed separately from their owners, while S corporations are not. LLCs are a newer type of corporation that combines features of both C corporations and S corporations. No matter what type of corporation it is, a corporation must follow certain rules and regulations. For example, corporations must keep accurate financial records and hold annual shareholder meetings. They must also follow environmental, safety, and other laws. Many people work for corporations, and some people own stock in them. Some corporations are very large and well known, such as Microsoft, Apple, and Walmart. Others are smaller and less well known. Some corporations are headquartered in the United States, while others are headquartered in other countries.