Sean
A company is essentially a “legal person”. A legal person is a person or entity (a thing with distinct and independent existence) that can do all the legal things that a real person (aka natural person) can do.
Legal things that a person can do, and therefore a company can do, include:
- Enter into contracts
- Sue and be sued
- Own property
- Borrow money
- Pay taxes
- Hire employees
- And so on
A company is essentially an artificial person in that it is an entity separate from the individuals who own, manage, and support its operations. It is an organized group of people that work in concert to earn a profit from business activities.
