What is corporation & incorporation in business? I want details about corporation & incorporation. Define corporation & incorporation.
Incorporation is the act of becoming a corporation. A corporation is a legal entity that is not a person, which can come into being by going through various legal procedures. Corporations are a matter of state law, not federal law, so how one incorporates and the kinds of incorporation available will vary from one state to the next. Some general principles are true of all states, though, so I can describe a few of those.
Corporations can sue and be sued, can enter into contracts, and pay taxes under a different tax structure. Generally, the people who make up the corporation are immune from personal liability, which is why many corporations exist. That means that if you are the owner of a corporation and the corporation is sued, you cannot be held personally responsible for the liability of the corporation. Corporations are required to keep accurate records in their business dealings and to designate a person who can be served in a legal proceeding. A corporation may be for profit, or non-profit. Any time you see "Inc." after the name of an organization, that is a corporation.
Corporation is a legal form of organization created for carrying out business or some similar activity. Incorporation in this context refers to the process of forming a corporation.
Corporations are formed under the laws of the land regulating the process of their formation and usually require approval of government authorities. The operation of corporation is also regulated by such laws.
Corporation exist in different countries under different names. Foe example in USA these are called corporation, and in India these are called limited companies.