What is a legal entity that has received a charter from a state or federal government?

A corporation is a legal entity that is established by a state or federal government and is granted a charter that legally distinguishes it as a separate entity from its owners. This means that the corporation can enter contracts, sue, and be sued in its own name, which offers certain legal protections to its owners (shareholders) from personal liability for the debts and obligations of the corporation.

The charter sets out the corporation's purpose, structure, and governance, including the rights and responsibilities of its shareholders, directors, and officers. This formal recognition by the government allows the corporation to raise capital by issuing shares and provides a framework for ongoing operations, making it a foundational concept in business law and economic activity.

The other types of entities mentioned, such as partnerships, sole proprietorships, and limited liability companies (LLCs), do not have the same level of formal designation or legal structure conferred through a charter from the government. Each has different implications for liability, taxation, and governance. In particular, proprietorships and partnerships are typically more reliant on the personal assets of their owners, and while LLCs offer some liability protection, they do not operate in the same way as a fully chartered corporation.