How–and Why–to Incorporate Your Business

Is incorporation right for you? Find out with this comprehensive article on the ins and outs of forming a corporation.

The term corporation comes from the Latin corpus, which means body. A corporation is a body–it is a legal person in the eyes of the law. It can bring lawsuits, can buy and sell property, contract, be taxed, and even commit crimes. It’s most notable feature: a corporation protects its owners from personal liability for corporate debts and obligations–within limits.

The corporation is considered an artificially created legal entity that exists separate and apart from those individuals who created it and carry on its operations. With as little as one incorporator, a corporation can be formed by simply filing an application for a charter with the respective state. By filing this application, the incorporator will put on record facts, such as:

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