Which level of government primarily governs corporations?

The primary governance of corporations falls under state government authority. This is due to the fact that corporations are generally formed under state law, which grants states the power to regulate their creation, organization, and dissolution. Each state has specific statutes, known as corporation codes, that outline the requirements for forming a corporation, including naming, structure, governance, and reporting.

While the federal government does regulate certain aspects of corporate activities—such as securities regulation and anti-trust laws—these are usually supplemental to the foundational governance provided by state laws. Local governments do not typically have jurisdiction over the creation and regulation of corporations; instead, they may have limited roles in specific local business regulations. International governing bodies might regulate corporations operating across borders, but they do not impose governance on corporations directly within their respective states. Therefore, the role of state government in establishing and overseeing corporations is paramount, making it the correct choice in this context.