incorporate

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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.

incorporate

To obtain a state charter establishing a corporation. Owners of proprietorships and partnerships incorporate in order to obtain limited liability for themselves and for potential investors. The limited liability makes it easier for the firm to raise additional equity capital.

incorporate

To form a corporation by filing documents in the appropriate state authority, which may be one's own state or a corporation-friendly state such as Delaware. Once having formed the corporation,one must pay annual franchise taxes to the state for the privilege of existing as an artificial entity, and one must observe all the forms and conventions of corporate existence. In other words, the sole shareholder cannot form a corporation and then never have meetings, never sign documents in the corporate name,take all corporate money for personal use without accounting for it on the books and records of the corporation, and generally behave as if the corporation did not exist.If the shareholder(s) behave as if the corporation does not exist, then creditors may be able to pierce the corporate veil and seize assets of the individual shareholders.

References in periodicals archive ?
The word is found in both Bininj Kunwok and neighbouring Dalabon and in each of these two polysynthetic languages, the root morrdjdjanj belongs to a limited group of eligible nouns which are incorporable in the verbal complex (underlined in the following example):
Object of the contract include: management and construction supervision of the execution - in accordance with the design documentation - works road construction industry, storm water drainage system, the installation industry in the field of gas network, the installation industry in the field of electric power network reconstruction and installation industry in the field of telecommunication network reconstruction, supervising the work of Contractor and laboratory reporting the need for laboratory examinations by the Employer; supervision of Incorporable materials, quality control materials, control of quantity survey geodetic works to the extent necessary to determine the monthly range of works.