Corporation; Incorporation

Definition: (noun)

A legally recognized entity having rights and powers similar to a person; usually formed by one or more individuals to operate as a business, for tax or limited liability reasons.

Use: The document which forms a corporation is the Articles of Incorporation. A companion document called the Bylaws establishes rules for governing the corporation by establishing a board of directors to oversee the company, officers to run the company and procedures for meetings.

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Notes: Corporations are formed under state law. You can use Legal.com’s Legal Research tool for more information about how to incorporate in your state. For example, search “[name of state, province or country] corporation law”.

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