What is the term for a corporation created by individuals to perform a non-governmental function?

A corporation created by individuals to perform a non-governmental function is referred to as a private corporation. Private corporations are owned by individuals or a group of individuals and are distinguished from public corporations, which are owned by shareholders and traded on public stock exchanges.

Private corporations are typically established to provide goods or services while generating profit for their owners. This structure allows individual founders to maintain control over the company's decisions and operations without the obligations that come with public ownership.

In contrast, a non-profit corporation is designed to further a social cause and does not aim to generate profit for owners. Limited liability corporations combine features of both corporations and partnerships, providing personal liability protection while allowing for pass-through taxation. Public corporations, on the other hand, are aimed at serving the interests of the public or shareholders.

Thus, understanding the characteristics of these different types of corporations highlights why private corporation is the correct term for a company formed by individuals for non-governmental purposes.