{"id":4899,"date":"2016-04-04T10:47:49","date_gmt":"2016-04-04T15:47:49","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/what-does-it-mean-that-corporations-have-perpetual-existence.html"},"modified":"2025-10-20T10:23:00","modified_gmt":"2025-10-20T15:23:00","slug":"what-does-it-mean-that-corporations-have-perpetual-existence","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-does-it-mean-that-corporations-have-perpetual-existence.html","title":{"rendered":"What Does It Mean That Corporations Have ‘Perpetual Existence’?"},"content":{"rendered":"\n
\n

What Does It Mean That Corporations Have 'Perpetual Existence'?<\/h1>\n\n
\n
\n By Jade Yeban, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n

Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Perpetual existence<\/span> for a corporation means that it is a separate legal entity<\/span>, distinct from its owners or managers, and continues to operate even when an owner or manager dies or leaves the corporation. This characteristic is an advantage for business succession<\/span>.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Corporations are popular for small business owners<\/span> who want a business structure<\/span> that lives on, even after the owners change. Corporations have perpetual existence<\/span>, meaning the corporation continues to exist indefinitely, even after changes in ownership, until legal dissolution<\/a>.<\/p>\n

In legal terms, a\u00a0corporation<\/a>\u00a0is “an artificial creation of the law existing as a voluntary chartered association of individuals that has most of the rights and duties of natural persons but with perpetual existence<\/span> and limited liability.”<\/p>\n

In other words, a corporation exists as a\u00a0separate legal structure<\/a>, almost like a person under the law. Unlike a sole proprietorship<\/span> or a general partnership, a corporation is a separate legal entity<\/span>. This means it can own property, earn money, and be responsible for its actions, distinct from those who own it.<\/p>\n

But “perpetual existence<\/span>” in this context is a relative term. The corporation<\/a> may:<\/p>\n