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Incorporation is the legal process used to form a corporate entity or company. A corporation is a separate legal entity from its owners. Corporations can be created in nearly all countries in the world and are usually identified as such by the use of terms such as "Inc." or "Limited" in their names. It is the process of legally declaring a corporate entity as separate from its owners.

Incorporation has many advantages for a business and its owners, including 1) Protects the owner's assets against the company's liabilities 2) Allows for easy transfer of ownership to another party 3) Achieves a lower tax rate than on personal income 4) Receives more lenient tax restrictions on loss carry forwards 5) Can raise capital through the sale of stock.

Throughout the world, corporations are the most widely used legal vehicle for operating a business. While the legal details of a corporation's formation and organization differs from jurisdiction to jurisdiction, most have certain elements in common.

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