Incorporation is the legal process of creating a corporation, a distinct legal entity separate from its owners. When you incorporate a business, it becomes its own legal "person," able to own property, enter contracts, and be held accountable for its actions. This process provides several benefits, including limited liability for owners, meaning personal assets are protected from business debts or legal actions.
Incorporating your business also enhances its credibility, makes it easier to raise capital, and can offer tax advantages. The incorporation process typically involves filing Articles of Incorporation with the state, appointing directors, and creating corporate bylaws. Once incorporated, your business can enjoy the benefits of being recognized as a formal entity, helping it grow and succeed with more protection and flexibility.
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