Incorporation

Also called Incorporating

Legally forming your company as a distinct entity, separate from you as a person, so it can own assets, sign contracts, raise money, and shield founders from personal liability.

Why it matters

Incorporating is the step that turns an idea into a real company that can hire, raise, and protect its founders. The type and place of incorporation have long-lasting tax and fundraising consequences, so it is worth getting right early.

For example

Two founders incorporate a private limited company so the business can sign contracts, hire, and raise money as an entity separate from them.

Worth your time

Related terms

Go deeper

See how founders actually handle this on Co-founders, team and legal, part of the Starting Up hub.

eChai Partner Brands