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To formally create a corporation pursuant to the requirements prescribed by state statute; to confer a corporate franchise upon certain individuals.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.


v. 1) to obtain an official charter or articles of incorporation from the state for an organization, which may be a profit-making business, a professional business such as a law office or medical office, or a non-profit entity which operates for charitable, social, religious, civic or other public service purposes. The process includes having one or more incorporators (most states require a minimum of three for profit-making companies), choose a name not currently used (nor confusingly similar) by any corporation, prepare articles, determine who will be responsible for accepting service of process, decide on the stock structure, adopt a set of by-laws, file the articles with the Secretary of State of the state of incorporation, and hold a first meeting of incorporators to launch the enterprise. Other steps follow such as electing a board of directors, selecting officers, issuing stock according to state laws and, if there is going to be a stock offering to the public, following the regulations of the Securities and Exchange Commission and/or the State Corporations Commissioner. If the corporation is non-profit, it will have to apply for non-profit status with the home state, and may, if desired, also apply to the Internal Revenue Service for federal non-profit recognition, both of which require detailed explanations of the intended operation of the organization. 2) to include into a unit. (See: corporation, stock, incorporation, incorporate by reference)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
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