Why Do Corporations Have the Same Rights as You?

It can feel strange that a big company seems to have “rights” similar to a human.

However in law, that idea is mostly about making business work, not pretending a corporation is literally a person.

Quick Primer: Legal “Personhood”

In most modern legal systems, a corporation is treated as a “legal person.”

That doesn’t mean it’s human. It just means the law treats it as an entity that can:

• Own property

• Sign contracts

• Borrow and lend money

• Sue and be sued in court

If you had to track every single shareholder for every contract or lawsuit, almost no big company could function.

Legal personhood is a shortcut so the corporation, as an entity, can interact with the legal and financial system.

Why Give Corporations These Rights?

Corporations are given certain rights because it:

• Makes it easier to raise money and invest (people can buy shares)

• Allows businesses to continue existing even if owners change or pass away

• Lets companies enter contracts and be held accountable in court

• Helps separate personal finances from business finances

So while it might look like “the same rights as you,” it’s really about making sure businesses can operate, grow, and be legally responsible.

They Don’t Have All the Same Rights

Corporations don’t have every right a person has.

For example, they:

• Can’t vote in elections

• Don’t have human rights like freedom from physical harm in the same way you do

• Can’t be sent to jail

The overlap is mainly around property, contracts, and legal processes, not human day-to-day freedoms.

Where Your Everyday Banking Fits In

For you personally, the important thing is having tools that help you navigate this system without getting lost in it—especially around your own money, credit, and transactions.

With KOHO Essential:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Even if corporations have legal “person” status, your own financial tools should be simple, transparent, and built for an actual human, you.