What is Incorporation?

Incorporation refers to the legal process by which a corporation come in existence. The incorporation procedure is always governed by a state statutory scheme and is usually administered by the relevant Secretary of State for that jurisdiction. Once the corporation is formed, ordinarily by the filing of the Articles of Incorporation, it will have a separate and real legal existence different from the owners, directors, incorporators, and shareholders. Liability for the individual shareholders is therefore limited to the extent of the investment individually made. The incorporation process may involve an attorney. The more complex the business enterprise, and the bigger the investment, the more that legal talent will be needed.