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Definition of 'Incorporation'
The process of legally declaring a corporate entity as separate from its owners. Incorporation has many advantages for a business and its owners, including:
1) Protects the owner's assets against the company's liabilities
2) Allows for easy transfer of ownership to another party
3) Achieves a lower tax rate than on personal income
4) Receives more lenient tax restrictions on loss carry forwards
5) Can raise capital through the sale of stock
Incorporation involves drafting an "Articles of Incorporation", which lists the primary purpose of the business and its location, along with the number of shares and class of stock being issued, if any. Incorporation will also involve state-specific registration information and fees.
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Investopedia explains 'Incorporation'
Incorporation creates a protective bubble around a company's owners, shareholders and directors. Incorporated businesses can take the risks that make growth possible without exposing the shareholders, owners and directors to personal financial liability outside of their original investments in the company.
In the United States, incorporated businesses have legal endings such as Inc., Ltd. or Corp. The same general process is used around the world, although legal endings vary by nation.
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Search results for 'Incorporation'
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http://www.investopedia.com/articles/pf/08/incorporate-business.asp
... Even small businesses, such as those that produce incomes around $50,000 (or, in
Canada, anything over $30,000), can benefit from incorporation. ...
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http://www.investopedia.com/articles/mortgages-real-estate/08/rental-property.asp
... For a certain type of real estate investor, incorporation makes sense. If
you are employing people to find and manage a wide range ...
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http://www.investopedia.com/articles/02/101802.asp
... Look for the company name and location of incorporation, a CUSIP number (explained
in detail below) and the name of the person with whom the security is ...
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http://www.investopedia.com/exam-guide/finra-series-6/finra-rules/finra-rules-by-laws.asp
Investopedia's Series 6 online Study Guide. This section outlines the NASD articles
of incorporation and explains the NASD rules and by-laws. ...
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http://www.investopedia.com/ask/answers/06/sellingoptions.asp
The incorporation of options into all types of investment strategies has quickly
grown in popularity among individual investors. For beginner traders,. ...
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http://stocks.investopedia.com/stock-analysis/2009/McDermott-International-Splits-In-Two-MDR1223.aspx
... foreign country.". McDermott International became an inverted corporation
in 1983, when it changed its incorporation to Panama. Many ...
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http://www.investopedia.com/university/small-business/protect.asp
... You will need to choose a business name, appoint directors, file paperwork (articles
of incorporation), pay filing fees and follow any other specific state ...
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http://www.investopedia.com/articles/financial-theory/11/how-to-form-nonprofit-company.asp
... Prepare and file articles of incorporation. The articles of incorporation
are the document that creates your corporation. Appoint ...
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http://financialedge.investopedia.com/financial-edge/1211/Investing-In-Sports-Teams-And-Groups.aspx
... There are 112,158 shareholders holding a total of 4,750,937 shares of stock, and
the articles of incorporation prevent any individual from owning more than ...
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http://www.investopedia.com/articles/trading/09/incorporate-active-trading.asp
Trading through a separate business structure allows active traders access to all
of the tax mitigation and asset protection strategies available.
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