Incorporation

Incorporation is the legal process of creating a corporation, a separate entity from its owners. This means the business has its own legal status, can own assets, enter contracts, and be held accountable independently. Incorporation provides benefits like limited liability, protecting owners' personal assets from business debts or legal issues, and can enhance credibility. It involves filing specific paperwork with the government, such as articles of incorporation, and adhering to regulations. Essentially, incorporation formalizes the business’s existence as a distinct legal entity, offering protections and opportunities not available to sole proprietors or partnerships.