A corporation is a legal entity created by or under the authority of the laws of a state. The law treats a corporation as a separate entity that can sue or be sued. A corporation is distinct from the individuals who own stock in the company. These individuals are called shareholders. There are different forms of corporations such as C corporations, S corporations, closely held corporations and not for profit corporations. Another form of legal entity is a Limited Liability Company. The owners are called members, and it can be managed by a manager or by the members.