incorporate

(redirected from incorporators)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia.

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 ?
'With the new code allowing a one-person corporation, local business owners and investors could already stop the practice of naming their entire household as incorporators simply to comply with the stringent requirement of the law,' added Drilon.
Higgins, are confidential and he would have violated incorporators' privacy by releasing them without their consent.
Johnson also celebrated a birthday at Higgins in his youth, and thought it was reasonable for the incorporators to take some time to come up with a rational solution.
On March 27, the 70 Higgins Armory Museum incorporators will hold their annual meeting and be asked to endorse the move.
The Department of Justice (DOJ) has issued an Immigration Lookout Bulletin Order (ILBO) against eight incorporators and eight officers of KAPA Community Ministry International Inc.
Former City Engineer Alfredo Macapugay of Quezon City and Electrical Division Chief Romeo Montallana of the Quezon City Engineering Office, together with Manor Hotel incorporators William Genato, Rebecca Genato, Marion Fernandez and Dionisio Agengino, as well as hotel manager Candelara Aranador, are appealing the Sandiganbayan's decision convicting them of their graft charges.
Notable among the amendments to the present law is the provision on the number of incorporators. While the old law allowed not less than five but not more the 15 incorporators to organize a corporation, Senate Bill 1280 allows even one person to create a corporation.
Under the proposed law, local business owners will no longer need to resort to listing their 'entire household' as incorporators to comply with the stringent requirement of the existing corporation law.
Trustees, incorporators and staff of Higgins Armory Museum in Worcester held their 79th annual meeting and a send-off celebration for Kent Russell, who resigned as executive director of Higgins Armory Museum.
Some of the incorporators of the NoLCom HFI namely Defense Undersecretary for Defense Policy Ricardo A.
Based on the complaint filed by the Office of the Ombudsman in 2012, Nida was among the incorporators and directors of Rayborn-Agzam Center for Education Inc.
Before, organizing a corporation required getting at least five people to act as incorporators and raising P5,000 as minimum paid-up capital.