Incorporation

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Incorporation

A legal process through which a company receives a charter and the state in which it is based allows it to operate as a corporation.

Incorporation

The process by which a business becomes a legal entity separate from its owner(s). Incorporation presents a number of advantages: becoming a separate legal entity means that the business itself makes or loses money, which protects owners from liability for its debts. Likewise, a corporation is taxed on its earnings separately from its owners, and, in many countries, the corporate tax rates are lower than personal tax rates. The process of incorporation involves writing articles of incorporation and registering them with the appropriate government entity in order to receive a corporate charter, which confers corporate legal status.

Incorporation.

When a business incorporates, it receives a state or federal charter to operate as a corporation. A corporation has a separate and distinct legal and tax identity from its owners.

In fact, in legal terms, a corporation is considered an individual -- it can own property, earn income, pay taxes, incur liabilities, and be sued.

Incorporating can offer many advantages to a business, among them limiting the liability of the company's owners. This means that shareholders are not personally responsible for the company's debts. Another advantage is the ability to issue shares of stock and sell bonds, both ways to raise additional capital.

You know that a business is a corporation if it includes the word "Incorporated" -- or the short form, "Inc." -- in its official name.

incorporation

see COMPANY FORMATION.

incorporation

see COMPANY FORMATION.
References in periodicals archive ?
The automaker aims to transfer to a newly incorporated company, Fiat Industrial SpA certain assets in the truck, industrial and marine powertrain, agricultural and construction equipment businesses and liabilities.
By establishing an overseas incorporated company in Brazil, SHI plans to become a stable supplier of power transmission equipment, increase sales in the country as well as neighboring countries, and ultimately expand its business presence in the region.
TopCo will be a Spanish incorporated company registered in Madrid and the majority of board meetings and all shareholders' meetings will take place in Madrid.
The consortium is working with the licence pre-grant requirements, including the formation of an incorporated company with the other shareholders as specified in the fixed licence application procedures issued by ictQATAR.
The Consortium is working with the licence pre-grant requirements, including the formation of an incorporated company with the other shareholders, as specified in the Fixed Licence Application Procedures issued by ictQATAR, the statement said.
Beacon became an incorporated company in August, according to records filed with the Oregon Secretary of State.
Chief executive Leo Crawford, finance director John O'Donnell and property director John Clohisey will each hold a third of BWG through a newly incorporated company, Triode Investments.

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