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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.
The individuals creating a corporation must file legal documents generally referred to as. articles of incorporation with the appropriate state office (often the secretary of state). This isa legal document that the state issues to a company based on information the company provides in the articles of incorporation.