Corporation law allows people to invest their money in a corporation and become owners without imposing unlimited liability or management responsibilities on themselves. Many people are willing to invest their savings in a large, risky business if they have limited liability and no management responsibilities. Far fewer people are willing to invest in a partnership or other business form in which owners have unlimited liability and management duties. Corporations are the form of business organization most often associated with the term business. Most large businesses are corporations.
Corporations are creations of the state, with methods of creation dictated by state statute.
Businesses are generally required to file their articles of incorporation with the Utah Division of Corporations and Commercial Code . Upon approval, the incorporators designate the board of directors and issue stock. The directors are subsequently elected by the shareholders and are responsible for establishing corporate policy. They have a fiduciary duty to preserve the corporation. The board is empowered to hire managers to operate the business and conduct its affairs.