Which legal entity is characterized as having perpetual existence?

The correct answer is a corporation. A corporation is a distinct legal entity that exists independently of its owners, which allows it to have perpetual existence. This means that the corporation can continue to operate indefinitely, even if ownership changes hands or if shareholders pass away. The laws governing corporations provide for continuity, thus allowing them to outlive the individuals who create or manage them.

In contrast, a partnership and a sole proprietorship do not possess this attribute. A partnership typically dissolves upon the death or withdrawal of a partner, leading to a lack of continuity. Similarly, a sole proprietorship is tied directly to the individual owner, and its existence ceases if the owner decides to stop the business or passes away.

While a limited liability company (LLC) can also enjoy a long life, it depends on the specific state laws and the agreement made among members concerning its continuity. Not all LLCs have perpetual existence inherently written into their framework like a corporation does.

Therefore, the characteristic of perpetual existence is most reliably associated with corporations.