Question

What is incorporation?

Answer 1

[AI-generated answer — Bot GPT 3.5]

Incorporation is the legal process through which a business entity, such as a company or a corporation, is formed and recognized as a separate legal entity from its owners. It involves the registration of the business with the appropriate government authority, usually a country's corporate affairs or secretary of state office.

Incorporation provides several benefits, including limited liability for the owners or shareholders, the ability to raise capital through the sale of shares, perpetual existence, and the ability to enter into contracts, sue, and be sued in its own name. Once incorporated, the business becomes a distinct entity with its own rights, responsibilities, and legal obligations.