The abbreviation “Inc.” appended to a company’s name signifies that the business is incorporated. This legal designation means the business exists as a separate entity from its owners, shielding the personal assets of the shareholders from business debts and liabilities. For instance, “Acme Corp., Inc.” indicates Acme Corp. has undergone the legal process of incorporation.
Incorporation offers numerous advantages, including limited liability, enhanced credibility, and perpetual existence. This structure also facilitates raising capital through the sale of stock and provides a framework for formal organizational governance. Historically, incorporation emerged as a means to encourage investment and economic growth by mitigating investor risk.
