While a corporation may seem like a word synonymous with business, not all businesses are incorporated, and it is not an automatic transition.

 

Business incorporation is the process by which a company legally forms and becomes a separate legal entity from its owners. By doing this, the  business can operate as a distinct legal entity, and shield owners from personal liability for the company's debts and obligations.

 

Incorporation can be relatively complex and generally requires filing legal documents with the government, paying fees, and complying with various regulations.