Corporation vs. Individual: What's the Difference?
Edited by Harlon Moss || By Janet White || Updated on October 6, 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.
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.
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.
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.
Comparison Chart
Nature
Legal entity separate from its owners.
Single human being.
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Legal Liability
Limited liability protects owners' personal assets.
Bears personal liability.
Rights and Freedoms
Holds certain rights like free speech but lacks personal freedoms.
Possesses a broad range of rights and freedoms.
Purpose and Goals
Exists to fulfill specific purposes, often economic or charitable.
Acts for personal goals or interests.
Economic Role
Contributes to economic development, innovation, and employment generation.
Contributes through consumption, labor, or innovation.
Corporation and Individual Definitions
Corporation
A business structure separate from its owners.
“The corporation paid dividends to its shareholders.”
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Individual
A single human being as distinct from a group.
“The individual has unique thoughts and experiences.”
Corporation
An association of individuals created by law.
“The corporation was sued for breach of contract.”
Individual
A person considered separately rather than as part of a group.
“Every individual is responsible for their own actions.”
Corporation
An organization with limited liability for its owners.
“Investors prefer the corporation structure for asset protection.”
Individual
A person distinguished by their own character.
“The individual expressed his opinion openly.”
Corporation
A group authorized to act as a single entity.
“The corporation entered into a new contract with the supplier.”
Individual
A member of a distinct political, racial, or other group.
“Each individual in the community has a role to play.”
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.
Individual
A person regarded as independent and original.
“The artist is an individual with a unique style.”
Corporation
Such a body created for purposes of government. Also called body corporate.
Individual
Of or relating to an individual, especially a single human
Individual consciousness.
Corporation
A group of people combined into or acting as one body.
Individual
By or for one person
Individual work.
An individual portion.
Corporation
(Informal) A protruding abdominal region; a potbelly.
Individual
Existing as a distinct entity; separate
Individual drops of rain.
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.
Individual
Marked by or expressing individuality; distinctive or individualistic
An individual way of dressing.
Corporation
The municipal governing body of a borough or city.
Individual
Special; particular
Each variety of melon has its individual flavor and texture.
Corporation
(historical) In Fascist Italy, a joint association of employers' and workers' representatives.
Individual
Serving to identify or set apart
"There was nothing individual about him except a deep scar ... across his right cheek" (Rebecca West).
Corporation
A protruding belly (perhaps a play on the word corpulence).
Individual
A single human considered apart from a society or community
The rights of the individual.
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.
Individual
A human regarded as a distinctive or unique personality
Always treated her clients as individuals.
Felt he was quite an individual.
Corporation
A business firm whose articles of incorporation have been approved in some state
Individual
A single organism as distinguished from a species, community, or group.
Corporation
Slang terms for a paunch
Individual
A member of a collection or set; a specimen.
Corporation
A legal entity formed to conduct business.
“The corporation is planning to launch a new product line.”
Individual
A person considered alone, rather than as belonging to a group of people.
He is an unusual individual.
Individual
(legal) A single physical human being as a legal subject, as opposed to a legal person such as a corporation.
Individual
An object, be it a thing or an agent, as contrasted to a class.
Individual
(statistics) An element belonging to a population.
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.
Individual
Intended for a single person as opposed to more than one person.
Individual personal pension; individual cream cakes
Individual
Not divisible without losing its identity.
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.
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.
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.
Individual
An independent, or partially independent, zooid of a compound animal.
Individual
A human being;
There was too much for one person to do
Individual
A single organism
Individual
Being or characteristic of a single thing or person;
Individual drops of rain
Please mark the individual pages
They went their individual ways
Individual
Separate and distinct from others of the same kind;
Mark the individual pages
On a case-by-case basis
Individual
Characteristic of or meant for a single person or thing;
An individual serving
Separate rooms
Single occupancy
A single bed
Individual
Concerning one person exclusively;
We all have individual cars
Each room has a private bath
FAQs
Can corporations have perpetual existence?
Yes, corporations can continue to exist even if ownership changes, granting them perpetual existence.
Is a corporation considered a separate legal entity?
Yes, a corporation is a separate legal entity from its owners.
Can an individual form a corporation?
Yes, an individual can form a corporation.
Does a corporation have limited liability?
Yes, a corporation provides limited liability protection to its owners.
Can a corporation enter contracts?
Yes, a corporation has the legal capacity to enter contracts.
Can an individual create innovation?
Absolutely, an individual can create innovation and contribute new ideas.
Do individuals have personal liability?
Yes, individuals bear personal liability for their actions and debts.
Do corporations pay taxes differently than individuals?
Yes, corporations and individuals are subject to different tax laws and rates.
Does individual refer to a single person?
Yes, individual typically refers to a single human being.
Can an individual own property?
Yes, an individual can own property in their name.
Can a corporation own property?
Yes, a corporation can own property, separate from its owners.
Do individuals have rights and freedoms?
Yes, individuals possess a broad range of rights and freedoms.
Are corporations profit-driven?
Typically, yes, corporations are usually profit-driven, aiming to maximize shareholder value.
Do corporations and individuals have different legal rights?
Yes, corporations have certain legal rights but lack the personal freedoms and protections accorded to individuals.
Can an individual act on their own behalf?
Yes, an individual can act on their own behalf in legal and other matters.
About Author
Written by
Janet WhiteJanet White has been an esteemed writer and blogger for Difference Wiki. Holding a Master's degree in Science and Medical Journalism from the prestigious Boston University, she has consistently demonstrated her expertise and passion for her field. When she's not immersed in her work, Janet relishes her time exercising, delving into a good book, and cherishing moments with friends and family.
Edited by
Harlon MossHarlon is a seasoned quality moderator and accomplished content writer for Difference Wiki. An alumnus of the prestigious University of California, he earned his degree in Computer Science. Leveraging his academic background, Harlon brings a meticulous and informed perspective to his work, ensuring content accuracy and excellence.
