Corporation and incorporation have different meanings. One leads to another. The difference between both is the same as between swimming and the swimmer. One is the process, and the other is the product.
Incorporation Process
Incorporation is the legal process of setting up a corporation. Corporation refers to a functioning body that runs the business entity’s operations. “Incorporation” is the act of starting a corporate business entity.
While both refer to the establishment of a legal entity, the key distinction lies in the fact that corporation refers to an existing entity with rights and liabilities, while incorporation is the process of forming a corporation.
The company comes into legal existence when its founders comply with their state’s incorporation process. It doesn’t matter which one you choose: Inc. or Corp. Bottomline: Having made a choice in the company name, the business cannot use the other extension without filing for a formal change of name.
Differences Between Corporation and Incorporation
Incorporation is the process of forming a corporation, while a corporation is an existing legal business entity. Incorporation provides limited liability protection and allows accessing capital markets. A corporation continues existing as long as it remains solvent.
All corporations are incorporated through a legal process. After obtaining a certificate of incorporation, a corporation comes into existence. While incorporated entities have a separate legal identity, incorporation does not. Corporation shares can be traded, while incorporation shares cannot.
Being Incorporated
When Mary turns her sole proprietorship into a corporation, we can say that Mary is now incorporated. To incorporate a corporation, you must determine in which state you will incorporate and file incorporation papers.
If you form a corporation, “Inc.” is just one of several designations you could add to your company’s name.
Being incorporated means the company has become a legal entity, separate from its owners. Incorporation involves writing the articles of incorporation and enumerating shareholders.
Both "Inc." and "corp." are used in names of incorporated entities.
A true corporation has gone through incorporation, is treated as a separate entity from owners, and confers certain rights. This applies to business corporations and other entities like schools and non-profits.