The Benefits of Incorporation

Process of Incorporation

Process of Incorporation:

The certificate of incorporation (also called a charter or articles of incorporation) are filed with the appropriate state office, listing the purpose of the corporation, its principal place of business and the number and type of shares of stock.  A registration fee is due, which is usually between $25 and $1,000, depending on the jurisdiction.


A corporate name is generally made up of three parts: “distinctive element”, “descriptive element”, and a legal ending.  All corporations must have a distinctive element, and in most filing jurisdictions, a legal ending to their names.  Some corporations choose not to have a descriptive element.  In the name “Tiger Computers, Inc.”, the word “Tiger” is the distinctive element; the word “Computers” is the descriptive element; and the “Inc.” is the legal ending.  The legal ending indicates that it is in fact a legal corporation and not just a business registration or partnership.  Incorporated, limited, and corporation, or their respective abbreviations (Inc., Ltd., Corp.) are the possible legal endings in the U.S.


Usually, there are also corporate bylaws which must be filed with the state.  Bylaws outline a number of important administrative details such as when annual shareholder meetings will be held, who can vote and the manner in which shareholders will be notified if there is need for an additional “special” meeting.

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