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File the appropriate documentation with the secretary of state to create a corporation, which is recognized as a person for most purposes.

Choosing to incorporate a business offers the owner or owners a number of legal protections as well as financial benefits. A corporation is legally a separate entity, meaning that people can start a business without putting their assets at risk if the company fails. In addition, there are some financial perks reserved for corporations that individuals working as self-employed professionals cannot enjoy.

  1. Definition
    • A corporation is a legal entity that is used solely for business purposes. It cannot be used for personal reasons, such as getting credit cards to buy personal gifts and vacations.

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