- Find Attorney
Business corporation is a corporation organized to engage in some business for profit. In bankruptcy Act, the term refers to a corporation the sole motive of which is pecuniary gain and the chief purpose of which is to carry on trade or commerce in an established field and to do this primarily for the financial benefit of those who have joined in its organization and in the conduct of its affairs.
When a corporation is doing the very things it was organized to do, and it is not a charitable, benevolent, or social corporation, it is a business corporation within the meaning of the state and Federal franchise tax statutes. [Union Oil Associates v. Johnson, 2 Cal. 2d 727, 729-730 (Cal. 1935)]
Business corporation is also known as commercial corporation.