Incorporation is the term denoting the formation of a new corporate firm, whether business or non-profit. It is a legal procedure that involves registering a company name and logo. Incorporation of a company has lots of benefits when compared to a company run by an individual or group of individuals. The first benefit, of course, is that your assets are in stocks owned by the public, and you hold a comparatively lower personal liability. This also reduces the personal risks for company owners when somebody decides to sue the company. Owners can also cut down on the income taxes they pay as the sole owners of their company, and also prevent the possibility of a personal bankruptcy by incorporation.