A corporation is one of three basic ways to organize a company. A proprietorship means you own the company yourself, and you ARE the company--its debts are also your personal debts. A partnership is similar, except that profits and debts are shared among several individuals according to a written agreement. Debts are also personal, and partners must agree on decisions. A corporation is a synthetic entity--it is treated like a person, though it isn't human. Stockholders vote on decisions, or often thee is a board of directors. The President of CEO implements those decisions and has latitude on HOW to do it--the Board usualyy elects him. In large corporations there are often Financial (CFO) and Operations (COO) officers for other functions. The responsibility for debts rests with the stockholders; no one person or group of partners is personally responsible for them. My company is a Limited Corporation--I hold all the voting stock, since I am the only investor, but bankruptcy cannot touch my personal assets. I and my appointed officers receive salaries and benefits (not much, yet), and I am President and CFO and COO all wrapped in one. Sometimes you see, instead of "Inc.," the letters "L.L.C" for such a business. Professionals such as doctors and lawyers protect their assets with a "P.C."--a Personal Corporation. Aha! so that's what that alphabet soup all means. In the English system, "Inc." is usually rendered as "Ltd." There are also nonprofit corporations--my lady has one to treat ADHD and autistic kids. They get special tax breaks and protections of assets because of their nonprofit status. Many hospitals use such a designation, too.