To incorporate (incorporation) is the legal process of creating an entity or corporation. It is required to draft and file the Articles of Incorporation (also referred as corporate charter) with the Secretary of State, as well as enumerate the corporation's shareholders.
The Articles of Incorporation generally lists the purpose of the corporation, the type and number of shares, its location, along with its original capital structure.
After the corporation is legally established, the assets and the income of the corporation will be separated from the personal assets and income of the shareholders, and the corporation is usually identified as "Inc." or "Limited (Ltd.)"
[Last updated in March of 2022 by the Wex Definitions Team]
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