FAQ 2. What does it mean to “incorporate” my business?

When lawyers speak of incorporating, they mean taking certain legal steps to form a limited liability entity called a “corporation.” The steps needed to form a corporation include filing articles of incorporation with the Secretary of State’s office in the corporation’s state of domicile, as well as preparing a variety of other documents such as bylaws, minutes, and share certificates.

When some business people say they want to “incorporate,” however, they may use that term as shorthand meaning they want to protect their personal assets from their business liability. The form that liability protection will take may vary depending upon the client’s circumstances and could result in the formation of anything from a limited liability company, a limited partnership, a trust, or an actual corporation.

If you aren’t sure what is the best format for your business or subsidiary, an experienced business lawyer can help ensure that you select the most cost-effective and best protection available.

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