Legal Definition of Corporation: A legal entity composed, usually, of a number of people who have joined together for a common purpose. Such legal entities are formed under city, state, or federal laws. Some corporations are public and some are private; some private corporations are organized for profit, others for nonprofit. Private corporations often issue stock to their owners in return for the money they invest | Looking to understand the legal definition of a corporation? Learn about the types of corporations, the importance of incorporating, and the benefits it brings. Protect your assets and enhance your business’s credibility. Find out more here