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 ?
Fantini Incorporators is headquartered in Delaware, corporate home to most of the nation's Fortune 500 companies and many other foreign and domestic corporations.
The resolution said that Vitangcol together with the private respondent incorporators were equally liable under RA 9184 for submitting a false affidavit of disclosure in an attempt to conceal the relationship of Vitangcol and Soriano which would have automatically disqualified PH Trams from participating in the procurement
Higgins sent overnight mail packages containing proxy forms to as many incorporators as she could locate.
Johnson also celebrated a birthday at Higgins in his youth, and thought it was reasonable for the incorporators to take some time to come up with a rational solution.
Higgins has been an incorporator of the museum for many years.
An incorporator of three separate firms that won bids to maintain MRT-3 since 2012 remains elusive despite efforts of the Senate to make him appear before an inquiry into the ongoing inefficiency mess at the railways.
Trillanes said Binay's ally Rodolfo Plaza and his consultant at the Office of the Vice President, Shirley Plaza are incorporators of Prosperidad.
whose incorporators were also the same people behind the bus firm.
Oscar Rodriguez, chairman of the House Committee on Good Government and Public Accountability, said he plans to invite Arturo Soriano, one of the incorporators of PH Trams, the company that bagged the MRT maintenance contract.
The firm is dedicated to informing technology suppliers, incorporators and users about strategic opportunities with a specific focus on the impact of the Embedded Internet - the concept that all sorts of devices and systems, enabled via embedded intelligence and networking technologies will unleash new modes of client interaction and service delivery.
looks on at a press conference held at the PRC office yesterday on the alleged forgery of the signature of the PRC chairperson in connection with the SEC registration of the Philippine Society for Stem Cell Medicine, whose incorporators have been accused of unprofessional, dishonorable and unethical conduct before the PRC.
Besides Bautista, Werfast incorporators Mario Juan, Enrique Valerio, Lorna Perena and Juliana Pasia were also ordered arrested.