A business corporation is generally organized for profit and is formed under a state's corporation act or business corporation act. Incorporation distinguishes the finances of the business owners from those of the business they own. Owners of a corporation are not personally liable for the debts of the business. The corporation has an independent legal existence which is unaffected by death, as well as by changes in ownership or management. Incorporation requires compliance with individual states' corporations codes and payments of annual corporate taxes. Lawyers may be of great assistance with the many intricacies involved in the incorporation process. An established relationship with a corporate attorney can be a valuable resource throughout the life of a business. For more information on incorporating, contact a qualified attorney.
