A legal entity owned by individual stockholders?

A legal entity owned by individual stockholders is typically a corporation. In this structure, stockholders hold shares representing ownership in the company, allowing them to participate in its profits and losses. Corporations offer limited liability protection to their stockholders, meaning their personal assets are generally protected from the corporation's debts and legal obligations. This type of entity can raise capital more easily through the sale of stock and is subject to specific regulatory and tax requirements.