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 ?
This problem can be overcome if the incorporation of the partnership is structured so that the partners (and not the partnership) are the incorporators.
Donnelly contact information of current incorporators so she could lobby them to vote against the proposal or obtain their proxies if they could not attend.
Fantini Incorporators targets real estate, lodging, and casino developers who are forming corporations or want services such as resident agent representation.
In addition to these professional distinctions, he is a member of the Hamot Board of Incorporators, past President of Erie Estate Planning Council, is a member of the Erie Life Underwriters Association and serves on the Board of Erie County Area Agency on Aging.
She said she will be among the 70 incorporators who will attend the annual meeting at the museum at Wednesday afternoon to take a vote on whether to endorse the move.
ISI) announced today the completion of the acquisition of the assets of National Business Incorporators, LLC (NBI), a leading provider and pioneer in online incorporation, registered agent services, headquartered in Palm Springs, CA.
On March 27, the 70 Higgins Armory Museum incorporators will hold their annual meeting and be asked to endorse the move.
Traditionally focused on residential projects for the middle and upper middle income public and commercial projects, in the past three years it has evolved from a small company to position itself among the five largest incorporators in the greater Sao Paulo area.