Most well-known companies are corporations, such as Microsoft Corporation, The Coca-Cola Company, and Toyota Motor Corporation. Some corporations operate under their official names as well as other business names, like Alphabet Inc., which is famously known for operating as Google.

A company is established when a group of shareholders, who own a portion of the corporation through their shares, come together to pursue a common goal. The objectives of a company can be profit-driven or charitable. However, the majority of corporations aim to generate returns for their shareholders. As partial owners, shareholders are only responsible for paying for their shares upon issuance. The process for forming a corporation varies depending on the state where the business operates and where you reside. Typically, you’ll need to file articles of incorporation with the state and issue stock to the shareholders. Shareholders then elect the board of directors during the annual meeting.