What Does it Mean to Incorporate?
When a business becomes a corporation, it is legally treated like a person that is separate from the shareholders who own the corporation. This means that the corporation is capable of hiring employees, taking out loans, paying taxes, owning property, and commencing or being subject to lawsuits.
Incorporating your business means that shareholders will not be individually responsible for the corporation’s debt and obligations.
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Two Types of Corporations?
There are two kinds of corporations, a public company, and a private company. A public company has its shares available for trade on a stock exchange, while a private company’s shares are owned by a select few people and are not available for purchase by the public.
How Do I Get My Business Incorporated?
One or more people must act as the incorporator(s) for the business. This person or persons must complete the following in order to successfully incorporate a company:
- Register the business name through the Corporate Registry
- Prepare an incorporation agreement
- Establish the corporations ‘articles’–the set of governing rules that the business owners and shareholders will follow
- File and incorporation application through the Corporate Registry
Incorporating your business is a big, exciting step forward. It can also be overwhelming, which is why we’re here to help. Our lawyers have extensive experience with business law of all kinds, including incorporation, capitalization, all forms of legal documentation, as well as legal and strategic business advice.