Homonym: Incorporating (Integration)
Incorporating refers to the process of forming a legal corporation, which is a distinct entity separate from its owners. This process involves filing specific documents, such as articles of incorporation, with the appropriate government authority. Once incorporated, a business can enjoy benefits like limited liability, meaning the owners are not personally responsible for the corporation's debts.
Additionally, incorporating can enhance a business's credibility and make it easier to raise capital through the sale of shares. It also allows for perpetual existence, meaning the corporation can continue to operate even if ownership changes. This structure is commonly used by entrepreneurs and business owners to protect their personal assets.