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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Salamatof Native Association, Incorporated (907) 283-3745
Cotton Incorporated used the data from the Lifestyle Monitor to determine the target audience of the new commercials, which are women age 18 to 32.
* Along with the USDA, Cotton Incorporated has developed a bleached cotton with enhanced absorbency and greater resiliency.
* Product profiles for late stage and clinical stage products of Cytokinetics, Incorporated with complete description of the product's developmental history, mechanism of action, therapeutic class, target and major milestones.
AmFed Casualty Insurance Co., Ridgeland, Miss., was incorporated and commenced business in MissiSsippi on March 29.
The rule requiring certain branches to certify merely because branch losses could be carried forward to a new foreign entity (the incorporated branch) under foreign law is a trap for the unwary.
However, the coating technique limits the amount of additive that can be incorporated in the final product.
The funds are managed by an independent investment adviser Flaherty & Crumrine Incorporated, which was founded in 1983 to specialise in the management of portfolios of preferred and related securities.
The boards of directors of Flaherty & Crumrine Preferred and Income Fund Incorporated (NYSE:PFD), Flaherty & Crumrine Preferred and Income Opportunity Fund Incorporated (NYSE:PFO), Flaherty & Crumrine Preferred and Income Securities Fund Incorporated (NYSE:FFC), Flaherty & Crumrine Total Return Fund Incorporated (NYSE:FLC) and Flaherty & Crumrine Dynamic Preferred and Income Fund Incorporated (NYSE:DFP) authorised dividends for August, September and October 2019, the funds' disclosed on Friday.
Comerica Incorporated (NYSE: CMA) has announced it has named Curtis C.

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