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Incorporation (business) Incorporation is the formation of a new corporation (a corporation being a legal entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization, sports club, or a government of a new city or town.
Selective incorporation is a constitutional policy that has been enforced over the years in several United States Supreme Court rulings. The purpose of the policy is to protect American citizens from laws and procedures developed at the state level, which could potentially infringe upon their rights, as defined in the Bill of Rights.