A legal entity that exists under authority granted by state law. A corporation has its own identity, separate from its shareholders or owners, and as such can be sued, enter into contracts, buy or sell real estate or property, and even break the law. A corporation is responsible for its debts; typically, responsibility canÂ’t be directly assessed to shareholders or corporate directors or officers. A corporation continues indefinitely and is not affected by the death of shareholders, directors, or officers.