A private corporation is a term often used to describe a small corporation in which the stock is issued to a limited number of shareholders and is not available to the public.
In most small private corporations, the shareholders are actively involved in the business and also serve as officers and directors of the company.
There are some larger corporations with a substantial number of shareholders who choose to remain private for several reasons including more privacy and the high cost of going public and maintaining a public company.
A public corporation is one that is authorized to sell its stock to the public. Usually, only companies with substantial revenue and a large number of shareholders can afford the cost to go public and comply with the many regulations imposed on public companies by the securities laws and other governmental regulations.
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