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 ?

period of time, attracting large numbers of incorporations with

to create a short lived boom in District of Columbia incorporations.

(273) Yet the broader trend toward incorporations did

The historical race competition for corporate charters and the rise and decline of New Jersey: 1880-1910

As the case studies below demonstrate, urbanized NIM clusters form in fractious political environments with initial defection by the pioneering NIM spurring additional incorporations. Existing cities also play a potent role, providing direct funding support and political support to NIMs in some cases below, in order to enhance the suburban voting bloc against county rule.

A potential explanation for this intriguing finding is that annexation activity is an important contributor to overall annexation activity as suggested by the literature on defensive incorporations (Rigos & Spindler, 1991; Smith & Debbage, 2011).

Those striking outcomes did not escape the attention of nearby communities, and Aventura and Pinecrest incorporated, followed by a second wave of incorporations by communities wanting better results by seceding from Dade County.

The great defection: how new city clusters form to escape county governance

269 would apply to the incorporation of an insolvent partnership that occurs contemporaneously with a COD income event.

269 does not apply, the other question that must be answered is whether the corporation genuinely assumed the liabilities that are discharged following the incorporation. To the extent the debt is not assumed, because it is deemed to be either discharged immediately before the incorporation or not genuinely assumed, the COD income event Occurs outside the corporation.

Incorporating an insolvent partnership: availability of the insolvency exclusion

shines a light on the important policy implications of incorporation by

identifying best practices that can improve incorporation by reference.

Incorporation by reference in an open-government age

(26) As part of this procedure the association's members are required to pass incorporation resolutions and to adopt proposed rules for the incorporated association, which may be the model rules promulgated under the AI Act, or the association's own drafted rules.

The AI Act from its inception was also designed to provide not-for-profit associations with an uncomplicated and economical incorporation and regulatory system that takes account of the interests of members, creditors and the public.

Same old instrument same old tune? Critical perspectives on the public liability insurance provisions in the Associations Incorporation Act 1981 (Qld)