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 ?
These preliminary findings and experiences of other members of the medical establishment show that innovation in practice--even in incorporating medical abortion--is possible.
Professional and regulatory bodies are incorporating the report's definitions, terms and concepts in their standards, rules and literature.
Largely because of its experience with other scientific and laboratory products - and its capacity for incorporating market-driven considerations into design, while working with both engineering and manufacturing to optimize manufacturability - Hollis, NH-based Roche Harkins Design was selected as the team's design member.
By incorporating values into your camp's program, you can have a lasting impact on campers' religious and spiritual identity, too.
Robin Guenther, principal of Guenther 5 architects, recently completed a $10 million dollar renovation of a cancer treatment center for Maimonides Medical Center in Brooklyn, incorporating environmentally sensitive materials into her design that she hopes contributes to patient's recovery.
At Ithaca College (NY), Shelley Semmler, VP for Institutional Advancement, admits that after a perfectly satisfactory and productive strategic planning process, she and her colleagues initially struggled with how to use the plan, noting they had trouble incorporating it into everyday decisions.
Although traditional teaching techniques may be necessary to cover certain material, professors should consider incorporating innovative teaching techniques that encourage retention and application of course material into the curriculum.
One way around this is to emphasize incorporating environmental health into existing curricula rather than developing new courses.
Also, a full data retrieval system can be supplied, either as a stand alone or integrated system, incorporating a PC, monitor, network card, Windows, Office 97 and printer.
Because the tk gene is sensitive to the antiviral drug ganciclovir, injecting patients with cells incorporating this gene should render their tumors susceptible to ganciclovir.
And contractors do not seem to be turning their noses up at the legislation, perhaps because the industry is clearly moving towards incorporating green materials into all projects simply because they make sense.