What is a corporation? What is an incorporation? Are they the same thing? These are questions that many people have. I am going to explain the difference between corporations vs incorporations, as well as their similarities.

What is a corporation?

A corporation is a legal entity that can sue and be sued, own property, and have the benefit of limited liability. A corporation can also issue stock to raise money. The shareholders then own shares of stock in the company.

What is an incorporation?

Incorporation is a legal process that allows you to form a new business. It’s also the most common way for individuals and small businesses to get limited liability, which means that if something goes wrong with the company, its owners aren’t responsible for any losses or debts. In addition, incorporation often comes with tax breaks that can help reduce costs.

For example, in many states corporations don’t pay state income taxes on profits they earn from selling products or services within their home state (this is called “double taxation”). Instead of paying taxes on this money at both the corporate level as well as through personal income taxes paid by shareholders/owners of individual corporations who own stock in those companies (and therefore receive dividends), these profits are only taxed once–at either an entity level or shareholder level depending upon how many entities exist within one organization structure (more on this later).

Difference Between Corporation and Incorporation

The main difference between corporation and incorporation is that a corporation is a legal entity, while incorporation is the process of forming a corporation. A corporation can be formed by incorporating it or by registering it with state authorities in order to obtain certain privileges as an individual or organization.

A corporation may be defined as “a company owned by shareholders who have invested money in return for shares which represent their ownership interest.”

Similarities Between Corporation and Incorporation

Both corporation and incorporation are legal entities that have a life span. They both also have a purpose, which is to provide people with benefits such as limited liability or tax advantages.

Corporations are distinct from the owners and shareholders who own it, while in an incorporation there is no distinction between the owner and the business itself.

Takeaway:

A corporation is a legal entity that has been granted rights and responsibilities by the state. The state will also grant corporations certain privileges, such as limited liability for shareholders, tax exemption for profits and dividends paid out to shareholders, etc.

An incorporation is the process of forming a corporation; it refers to both the formation of an LLC or Ltd company (Limited Liability Company) as well as incorporating yourself into one if you’re doing so on your own behalf rather than hiring an attorney (or other professional).

A corporation is a company that has been incorporated, meaning it has been given special legal rights and privileges. An incorporation is similar to a corporation but may not have all of the same features or benefits. For example, an incorporation can only be formed by an existing business whereas a corporation can be created from scratch or purchased from another business owner who wants out quickly and easily without having to go through all of the steps involved in starting up again from scratch themselves