Incorporation


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Related to Incorporation: articles of incorporation

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 ?
Incorporation brochure is a comprehensive tri-fold document which provides information regarding the benefits of incorporating a company, as well as the procedure and documentation requirements for company incorporation, according to a statement issued by SECP on Thursday.
Regularly priced at $69, the incorporation bundle includes an incorporation or LLC with a name check, document preparation and filing, a free domain name, annual report and registered agent services and QuickBooks Simple Start.
Authorized capital stock, which refers to the number of stocks that a firm may issue, is stated in a company's articles of incorporation, where changes may only be made with the approval of stockholders and regulators.
At this point, it remains unclear whether the partners and partnership intend to report the incorporation as a tax-deferred transaction under Sec.
The aircraft completed an eight-month change incorporation programme and is now scheduled to go through final preparations in Everett ahead of its delivery to Japan Airlines (JAL).
Direct Incorporation will offer three web hosting packages with prices tailored to startups and small businesses.
A statement issued the Commission said that show cause notice gives RITS Incorporation fifteen days to file a written reply and mandates it to appear before CCP on February 1, 2011.
Tokyo, Japan, Nov 12, 2007 - (JCN Newswire) - Japaninvest Group plc (the "Group" or "Japaninvest") (TSE Mothers Global: 3827) announces that its board of directors has approved incorporation of the following subsidiaries for the purpose of developing of the Group's execution and Asia research businesses at its meeting held on 12 November 2007.
Another issue is political will and the ability of the community raise the $250,000 it would likely take to push an incorporation through.
The promoter must prepare and submit the Articles of Incorporation ("Teikan") for attestation by a Japanese notary public ("Koshonin").
Shaping Race Policies seeks to explain why racial incorporation is successful in some arenas of American public policy--such as in the employment sphere where affirmative action has significantly diversified the labor market--while it has failed in others--notably in the area of welfare, where policies have tended to marginalize minorities.
For this discussion, a tax-free incorporation includes all transfers of property to a corporation, in exchange for its stock, by one or more persons who control the corporation immediately after that exchange.