Incorporate Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Incorporate, written in plain English, along with examples of how it is used.
What is Incorporate?
formation of a corporation by fulfilling the necessary procedure of the government to form a business for profit making, or professional job or non profitable organisation. Incorporation is basically constructing the foundation base of any firm or organisation as per the statute of state.
History and Meaning of Incorporate
The term "incorporate" comes from the Latin word "incorporare," meaning to unite or combine into a body. In legal terms, it refers to the process of creating a corporation by fulfilling the necessary procedures set by the government. Incorporating a business or organization involves establishing it as a legal entity separate from its owners or members, giving it limited liability protection, and allowing it to conduct business activities.
The concept of incorporation dates back to ancient Rome, where it was used to create not-for-profit institutions such as universities and hospitals. During the 19th century, incorporation became a popular option for businesses looking to secure investors and protect their owners from personal liability. Today, incorporation remains an essential step for many businesses and organizations.
Examples of Incorporate
ABC Inc. incorporated in Delaware in 2010 and has since grown into a multi-million dollar company with locations across the United States.
The Animal Rescue Society is seeking to incorporate as a non-profit organization in order to receive tax-exempt status and secure funding.
John and Jane Smith decided to incorporate their small business to protect their personal assets from any potential lawsuits or debts incurred by the company.
Legal Terms Similar to Incorporate
LLC Formation - similar to incorporation, this term refers to the process of forming a limited liability company.
Charter - a legal document that establishes the existence and structure of a corporation.
Partnership Agreement - a contract outlining the terms of a partnership between two or more individuals who carry on a business together.