The full form of INC is Incorporate or Incorporated which indicates a type of business or company.
Here the word incorporated describes that a business or company is a corporation. INC term and its full form incorporated stands that a company’s business structure is a legal corporation type.
An incorporated company or corporation is an entirely separate entity from its owners and shareholders.
It is a kind of distinction of companies that are based on the structure of the company and type of business where incorporated is one of these types.
The incorporation is a legal important distinction because incorporated business turns into a separate structure under the law due to this distinction.
A corporation or incorporated company affords the owners limited liability and if in any case, the owner dies the corporation as its own entity lives on so the incorporated company or corporation doesn’t depend on the owner as it acts as an individual entity.
About INC
- When the business becomes a corporation that process is called incorporation and because of that it earns the right to put an INC. or incorporated term after its company or business name. There are some rules for every corporation that depends on the state and the specific type of corporation that business is.
- To turn a company into incorporation first it has to decide whether it wants to incorporate the business as an S corporation or a C corporation.
- C Corporation is the most general type of incorporation along with taxes paid on the corporate level and at the individual level on dividends. This C Corporation has no ownership restrictions.
- On the other hand S corporation uses the personal income tax returns of the business owner for the profits and losses pass through.
- Because of this reason the S corporation is known as the pass-through tax entity. S corporation is called a close corporation also and it is limited to no more than 100 shareholders who must be the citizen of the country.
- The incorporated company as a separate entity is liable for its own debts and it pays taxes on its earnings and it can also sell stock to raise money. An incorporated business is able to continue as an entity after the death of the chairman or director or stock sale. The corporation itself is established according to state law by application to the secretary of state and filing articles of incorporation.
- These corporations cost more to administer as well as are legally complex.
Incorporation process
- Once the business selects its type of corporation it must choose which state to incorporate. The most common option is always the home state however some corporation owners select the state with laws favourable to their company or corporation.
- Each corporation must have its directors and a registered agent who agrees to get important legal and tax documents on the behalf of their business or company.
- This registered agent must be available to receive these legal and tax documents during normal business hours and must be reachable.
- After this, the business has to compile and file articles of incorporation with the chose state’s secretary of the state to become incorporation. Every state of the country also has a filing fee that the business owners must pay while filing the articles.
- A company becomes into business once they receive notification that their business entity is now registered with the state as a corporation or INC. Hereafter the business can use the term INC or Incorporated after their business or company name.
- This new corporation must indicate that it is an incorporated entity. For this, the owners of the company may also select to use the full words corporation or company or just the abbreviations Co. and Corp.
INC full form in Politics
The full form of INC is Indian National Congress in politics, which is the oldest political party in India.
The Indian National Congress Party is also known by the name of the Congress Party, and this political party played an important role in the fight for independence from the British.
After independence, the Congress party has ruled India for almost 7o years and Jawaharlal Nehru, Lal Bahadur Shastri, Indira Gandhi, Rajiv Gandhi and Dr Manmohan Singh are some of the prominent names who became the Prime Minister from this party.
Some Other Famous Full Forms of INC
INC- Indian National Congress
INC- Internet Controller
