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 ?
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.
Near the end of his term, the undisclosed business interests increased to six, as he allegedly became incorporator, president, board chairman and stockholder of Puerto Princesa Bee Foods Corp.
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.
It turned out that the house was previously registered in the name of Wilfredo dela Cruz, brother of the incorporator.
In addition to creating the customized forms businesses need to incorporate, Incorporator Pro software also explains the legal and tax options available to business owners, so that they can make informed decisions that are right for their companies.
Poe said the OSAA learned the house with the address its members went to was previously registered under Wilfredo de la Cruz, brother of the elusive incorporator.
He was an incorporator of: the Alliance for Education, which gave him an award as "an outstanding friend of education," and Advocates for Excellence in Public Education.
But the court, in its March 3 resolution, said the prosecution did not present any proof that ADF incorporator 'Sally Z.
Worcester Art Museum, Worcester Historical Society, Tatnuck Country Club, and was an incorporator of Higgins Museum.
Vitangcol's first graft case before the Sandiganbayan was for allegedly irregularly awarding without public bidding the MRT-3 maintenance contract to PH Trams-CBandT joint venture where his uncle-in-law Arturo Soriano is an incorporator.
He served as an incorporator and member of the board of directors for Bay State Savings Bank.
Van Volkenburgh, a charter incorporator of the Bank in 1991 and its first Chairman, resigned to devote more time to his personal and business interests.