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The Legal Benefits of Incorporation and Documentation


By definition, Incorporation is the forming of a new corporation (a corporation being a legal entity that is effectively recognized as a person, albeit a fictitious one, under the law). The corporation may be a business, a non-profit organization, sports club or even a government of a new city or town.

What are the legal benefits of incorporation? Well they are,

  • Protection of personal assets
  • Transferable ownership
  • Tax benefits
  • Durability
  • Funds raising by selling stocks
  • Retirement funds

The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation.

By Incorporation one’s personal assets can be safeguarded against the claims of creditors and lawsuits. If the business is a partnership firm or one’s own proprietorship firm then we become obliged to all the liabilities of a business such as loans, accounts payable and legal judgments. In a corporation there are only stockholders, directors and officers whose liability is limited only to the amount they have invested in the business.

The Articles of Incorporation is also called as the Certificate of Incorporation or as the Corporate Charter have to be filed with the concerned state of regulatory authority. For all legal document preparation, legal transcription and legal documentation needs do contact Managed Outsource Solutions (MOS) a US based LPO pioneer that offers highly affordable yet professional service.

About Rajeev R

Rajeev R

Manages the day-to-day operations of MOS from NY. With an interest in information technology, Rajeev has guided MOS to extensive use of digital technology and the internet that benefits MOS as well as MOS clients.