Practices

Corporations can enter contracts, loans and borrow money, sue and be sued, hire employees, own assets, and pay taxes. The process for forming a corporation varies according to the state you do business in and the state you live in. For the most part, you'll need to file articles of incorporation with the state and then issue stock to the company's shareholders.

A contract is a legal agreement between two or more parties that is done voluntarily and deliberately. Contracts are mostly written but can be spoken or implied where most have to do with a sale or lease, employment, or tenancy.