Corporation vs. Individual
Edited by Sumera Saeed || By Sawaira Riaz || Updated on September 24, 2023
A corporation is a legal entity separate from its owners, often formed to conduct business, while an individual is a single human being. Both are entities but differ in legal status, rights, and nature.
Key Differences
A corporation is a complex legal structure, designed to act as a single entity, separate from its owners, allowing it to enter contracts, sue, and be sued. It is created by individuals but has its own legal identity, often serving economic or charitable goals. Conversely, an individual refers to a single human being, distinguished by personal identity, possessing unique rights, responsibilities, and consciousness. Individuals hold personal rights and responsibilities and can also own property and enter into contracts, but they act for personal goals or interests.
Sawaira Riaz
Sep 24, 2023
Considering rights and privileges, a corporation holds certain rights like free speech but lacks personal freedoms and protections accorded to human beings, such as the right to vote. Corporations exist to fulfill specific purposes, and their rights are related to those purposes. In contrast, an individual possesses a broad range of rights and freedoms, including the right to life, liberty, and the pursuit of happiness. Individuals are endowed with inherent rights and are central to discussions on ethics and morality.
Sawaira Riaz
Sep 24, 2023
From an economic perspective, corporations are pivotal in the commercial ecosystem, contributing to economic development, employment generation, and innovation. They are profit-driven entities, focused on maximizing shareholder value. On the other hand, individuals are consumers, employees, or entrepreneurs, contributing to economic activity through consumption, labor, or innovation. They pursue varied economic goals, driven by personal needs, desires, and aspirations.
Janet White
Sep 24, 2023
From a legal standpoint, corporations benefit from limited liability, protecting the personal assets of the owners or shareholders from corporate debts or liabilities. Corporations have specific regulations, obligations, and tax structures to adhere to, reflecting their intricate and formal nature. In contrast, an individual bears personal liability, taking full responsibility for their actions and debts. Individuals are subject to personal laws and taxations, reflective of their singular and personal nature.
Sawaira Riaz
Sep 24, 2023
Comparison Chart
Legal Liability
Limited liability protects owners' personal assets.
Bears personal liability.
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Sep 24, 2023
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Rights and Freedoms
Holds certain rights like free speech but lacks personal freedoms.
Possesses a broad range of rights and freedoms.
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Sep 24, 2023
Purpose and Goals
Exists to fulfill specific purposes, often economic or charitable.
Acts for personal goals or interests.
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Sep 24, 2023
Economic Role
Contributes to economic development, innovation, and employment generation.
Contributes through consumption, labor, or innovation.
Janet White
Sep 24, 2023
Corporation and Individual Definitions
Corporation
A business structure separate from its owners.
“The corporation paid dividends to its shareholders.”
Sawaira Riaz
Sep 24, 2023
Individual
A single human being as distinct from a group.
“The individual has unique thoughts and experiences.”
Aimie Carlson
Sep 24, 2023
Corporation
An association of individuals created by law.
“The corporation was sued for breach of contract.”
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Sep 24, 2023
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Individual
A person considered separately rather than as part of a group.
“Every individual is responsible for their own actions.”
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Sep 24, 2023
Corporation
An organization with limited liability for its owners.
“Investors prefer the corporation structure for asset protection.”
Sawaira Riaz
Sep 24, 2023
Individual
A person distinguished by their own character.
“The individual expressed his opinion openly.”
Aimie Carlson
Sep 24, 2023
Corporation
A group authorized to act as a single entity.
“The corporation entered into a new contract with the supplier.”
Sawaira Riaz
Sep 24, 2023
Individual
A member of a distinct political, racial, or other group.
“Each individual in the community has a role to play.”
Harlon Moss
Sep 24, 2023
Corporation
An entity such as a business, municipality, or organization, that involves more than one person but that has met the legal requirements to operate as a single person, so that it may enter into contracts and engage in transactions under its own identity.
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Apr 08, 2023
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Individual
A person regarded as independent and original.
“The artist is an individual with a unique style.”
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Sep 24, 2023
Corporation
Such a body created for purposes of government. Also called body corporate.
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Apr 08, 2023
Individual
Of or relating to an individual, especially a single human
Individual consciousness.
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Apr 08, 2023
Corporation
A body corporate, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.
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Apr 08, 2023
Individual
Marked by or expressing individuality; distinctive or individualistic
An individual way of dressing.
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Apr 08, 2023
Individual
Special; particular
Each variety of melon has its individual flavor and texture.
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Apr 08, 2023
Corporation
(historical) In Fascist Italy, a joint association of employers' and workers' representatives.
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Apr 08, 2023
Individual
Serving to identify or set apart
"There was nothing individual about him except a deep scar ... across his right cheek" (Rebecca West).
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Apr 08, 2023
Individual
A single human considered apart from a society or community
The rights of the individual.
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Apr 08, 2023
Corporation
A body politic or corporate, formed and authorized by law to act as a single person, and endowed by law with the capacity of succession; a society having the capacity of transacting business as an individual.
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Apr 08, 2023
Individual
A human regarded as a distinctive or unique personality
Always treated her clients as individuals.
Felt he was quite an individual.
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Apr 08, 2023
Corporation
A business firm whose articles of incorporation have been approved in some state
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Apr 08, 2023
Individual
A single organism as distinguished from a species, community, or group.
Sawaira Riaz
Apr 08, 2023
Corporation
A legal entity formed to conduct business.
“The corporation is planning to launch a new product line.”
Harlon Moss
Sep 24, 2023
Individual
A person considered alone, rather than as belonging to a group of people.
He is an unusual individual.
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Apr 08, 2023
Individual
(legal) A single physical human being as a legal subject, as opposed to a legal person such as a corporation.
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Apr 08, 2023
Individual
Relating to a single person or thing as opposed to more than one.
As we can't print them all together, the individual pages will have to be printed one by one.
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Apr 08, 2023
Individual
Intended for a single person as opposed to more than one person.
Individual personal pension; individual cream cakes
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Apr 08, 2023
Individual
Not divided, or not to be divided; existing as one entity, or distinct being or object; single; one; as, an individual man, animal, or city.
Mind has a being of its own, distinct from that of all other things, and is pure, unmingled, individual substance.
United as one individual soul.
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Apr 08, 2023
Individual
Of or pertaining to one only; peculiar to, or characteristic of, a single person or thing; distinctive; as, individual traits of character; individual exertions; individual peculiarities.
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Apr 08, 2023
Individual
A single person, animal, or thing of any kind; a thing or being incapable of separation or division, without losing its identity; especially, a human being; a person.
An object which is in the strict and primary sense one, and can not be logically divided, is called an individual.
That individuals die, his will ordains.
Sawaira Riaz
Apr 08, 2023
Individual
An independent, or partially independent, zooid of a compound animal.
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Apr 08, 2023
Individual
Being or characteristic of a single thing or person;
Individual drops of rain
Please mark the individual pages
They went their individual ways
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Apr 08, 2023
Individual
Separate and distinct from others of the same kind;
Mark the individual pages
On a case-by-case basis
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Apr 08, 2023
Individual
Characteristic of or meant for a single person or thing;
An individual serving
Separate rooms
Single occupancy
A single bed
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Apr 08, 2023
Individual
Concerning one person exclusively;
We all have individual cars
Each room has a private bath
Sawaira Riaz
Apr 08, 2023
FAQs
Can corporations have perpetual existence?
Yes, corporations can continue to exist even if ownership changes, granting them perpetual existence.
Sawaira Riaz
Sep 24, 2023
Is a corporation considered a separate legal entity?
Yes, a corporation is a separate legal entity from its owners.
Sawaira Riaz
Sep 24, 2023
Can an individual form a corporation?
Yes, an individual can form a corporation.
Sawaira Riaz
Sep 24, 2023
Does a corporation have limited liability?
Yes, a corporation provides limited liability protection to its owners.
Sawaira Riaz
Sep 24, 2023
Can a corporation enter contracts?
Yes, a corporation has the legal capacity to enter contracts.
Sawaira Riaz
Sep 24, 2023
Can an individual create innovation?
Absolutely, an individual can create innovation and contribute new ideas.
Aimie Carlson
Sep 24, 2023
Do individuals have personal liability?
Yes, individuals bear personal liability for their actions and debts.
Janet White
Sep 24, 2023
Do corporations pay taxes differently than individuals?
Yes, corporations and individuals are subject to different tax laws and rates.
Sawaira Riaz
Sep 24, 2023
Does individual refer to a single person?
Yes, individual typically refers to a single human being.
Harlon Moss
Sep 24, 2023
Can an individual own property?
Yes, an individual can own property in their name.
Aimie Carlson
Sep 24, 2023
Can a corporation own property?
Yes, a corporation can own property, separate from its owners.
Sawaira Riaz
Sep 24, 2023
Do individuals have rights and freedoms?
Yes, individuals possess a broad range of rights and freedoms.
Aimie Carlson
Sep 24, 2023
Are corporations profit-driven?
Typically, yes, corporations are usually profit-driven, aiming to maximize shareholder value.
Sawaira Riaz
Sep 24, 2023
Do corporations and individuals have different legal rights?
Yes, corporations have certain legal rights but lack the personal freedoms and protections accorded to individuals.
Sawaira Riaz
Sep 24, 2023
Can an individual act on their own behalf?
Yes, an individual can act on their own behalf in legal and other matters.
Aimie Carlson
Sep 24, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
Edited by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
