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 ?
And they say trustees and incorporators have been fully informed that Higgins administrators and trustees were exploring a merger with another institution.
Millares further explained that he did not declare his connections with the other companies mentioned in the ombudsman's charge sheets as he was just appointed as honorary incorporator by some close friends without truly paying any capital contributions.
6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees and Article 183 of the Revised Penal Code for failing to declare in his July 2010 and 2011 SALN that he is an incorporator and distributor of P200,000 to the Isa Akong Magsasaka Foundation Inc.
Martin Abner Sicat, Maria Charisma Sicat and Edmon Bautista are the other Aremar incorporators and directors.
Lopez explained that as incorporator and founding chairman of PHEI, Binay was then representing the 40 percent shareholdings owned by the City of Makati.
SEC has accepted the registration of Markable Solutions in accordance with the newly issued Guidelines on the Number and Qualifications of Incorporators under the Revised Corporation Code.
The new code also introduces provisions that seek to remove the minimum number of incorporators, permit the electronic filing of reportorial requirements and attendance in meetings via remote communication or in absentia, among others-practices that were not recognized in the old law.
According to their website, on November 2, 1953, bank director John Fribley wrote, "It is the intentions of the incorporators that the bank be owned by as many residents of this community as possible in order that the bank justify its proposed name, namely 'The Peoples Bank.'"
She also alleged that boards and incorporators of both museums have common members, causing conflicts of interest.
Long, former executive vice president of the bank, was one of the original CCSB incorporators. Prior to joining CGSB, he was assistant vice president of Plymouth Guaranty Savings Bank.
He outlines nonprofit benefits and disadvantages; the rights and roles of incorporators, officers, employees, and members; tax requirements; charity and foundation status; name choice and filing articles of incorporation; bylaws; state and federal tax exemption; organization; taxes; and hiring a lawyer and accountant.