what dose it mean to have a corporation? why do people have one?

Answer 1

It means you have something that will live longer than you. The corporation never has to die.

It means the corporation can do risky things (like sell food), that you would never dare to do on your own, because something might happen and you would get sued for all the money you had.

Answer 2

A corporation is a separate legal entity from the person who registered the business. It will continue to exist past the life of the founder, or until the officers or board elect to dissolve it.

The reasons for incorporating include the indefinite life of the business. If Henry Ford had not incorporated, Ford Motor Company would not have existed after his death. There is also protection for the founder. Creditors cannot go after the founder's personal finances if the company cannot pay it's bills (unless there is fraud like in Enron, but that is a different matter). If the company makes a bad product and someone gets hurt from it, or even just someone falling and getting hurt on the company's property, the company is the one that pays, not the founder.

Answer 3

When a business becomes incorporated, it becomes its own entity. Everyone, including the business owner, becomes an employee of the corporation. One of the major advantages of being a corporation is that it limits your personal liability. If someone sues the corporation, they can only go after corporate assets and not the owner's personal assets.