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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.
What Does Incorporated Mean in Business? By Kay Lee When creating a new business, the owner can structure the business in a number of ways that best suit his preferences as well as the type of business he is creating. When a business becomes incorporated, it has completed the process of becoming a corporation, as recognized by state law. Incorporation provides the owners with many advantages, but the primary benefit is the business will be viewed as a separate entity from its owners.