Legal Definitions - business associations

Business associations refer to the various forms of businesses such as corporations, limited-liability companies, and partnerships. It is a field of law that deals with the legal aspects of these business entities.

For example, a corporation is a type of business association where the company is considered a separate legal entity from its owners. This means that the corporation can enter into contracts, sue or be sued, and own property in its own name. Another example is a limited-liability company (LLC), which is a hybrid between a corporation and a partnership. It provides the limited liability protection of a corporation while allowing for the flexibility of a partnership.

Understanding business associations is important for entrepreneurs and business owners as it helps them choose the right legal structure for their business and ensures compliance with legal requirements.