Corporations can be created in nearly all countries in the world and are usually identified as such by the use of terms such as “Inc.” or “Limited (Ltd.)” in their names. It is the process of legally declaring a corporate entity as separate from its owners.
KEY TAKEAWAYS
- Incorporation is the way that a business is formally organized and officially brought into existence.
- The process of incorporation involves writing up a document known as the articles of incorporation and enumerating the firm’s shareholders.
- In a corporation, the assets and cash flows of the business entity are kept separate from those of the owners and investors, which is called limited liability.
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