What Does Inc Mean in Business | Complete Dissection of the Term Inc.

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What does inc mean in business? The term “Inc” is an abbreviation for the word “incorporated.” A company name ending with “Inc” indicates that the business entity is a corporation.

When a business is incorporated, it becomes a legal entity that is separate from its owners/ shareholders. This means that the company can own property, enter into contracts, and sue or be sued in its own name.

Quick Answers

What does Inc mean? Inc is a short form of Incorporated. In broader terms, incorporated means a business is legally registered with a state and becomes a separate legal entity from its owners. However, legally speaking, incorporated represents businesses that are registered as a corporation with the state government.

How to incorporate a business? There are mainly two ways to incorporate a business, i.e. incorporating a business by yourself by following 10 easy-to-follow steps, or hiring a reliable incorporation service.

What are the major pros & cons of inc? Incorporating your business offers limited liability protection and funding opportunities. However, one of the major downsides of incorporating your business is that it typically requires a substantial investment of both time and money.

If you’re feeling lost in the world of business, don’t worry – you’re not alone. Even experienced entrepreneurs can get confused by all the acronyms and abbreviations out there. Understanding what the term Inc. means in a company name can help you choose the right entity when starting a new business.

So if you’ve ever wondered what “Inc” stands for and are looking to learn the advantages and disadvantages of incorporating your business, read on.

In this blog post, we will explore what does Inc mean in business, how to legally incorporate your business in any state, and discuss the pros and cons of this structure.

What is “Inc” in a Company Name?

Before taking a plunge into a new business, you first need to decide on its legal structure. Once your business is registered with the state under a specific business structure, it will have the abbreviated form of that entity at the end of the company name. 

There are several abbreviations that companies include in their official titles such as Co., Inc, LLC, LLP, LP, Ltd, etc. In the subsequent section, we are going to discuss what does Inc mean in business.

Inc is a short form of Incorporated. In a broader terms, incorporated means a business is legally registered with a state and becomes a separate legal entity. However, legally speaking, the term incorporated means a company is registered as a corporation with the state. 

So, if a company has Inc at the end of its name, what does it indicate?

If a business has “Inc.” at the end of the company’s name, it means the company is registered with the state as a corporation. Whether the company is registered as an S corporation or a C corporation, the company name will end with Inc, Co., Corp., PC, or Ltd. 

You can also use the full forms such as Incorporated, Limited, Incorporation, Company, Professional Corporation, or Corporation at the end of your business name. 

What is a Corporation or Incorporated Business?

An incorporated business or a corporation is a legal entity that is registered with the state government by submitting a charter or articles of incorporation. In the USA, a business registered as a “corporation” is a specific type of legal entity that is owned by shareholders. The entity is run by a board of directors which appoint managers to run the business affairs.

In other words, incorporated businesses are separate legal entities from their owners and the owners of a corporation are not personally liable for any debts or obligations the company may incur. 

To learn more about other business structures that separate the owners from the business, read our article: LLC vs LLP vs S Corp vs C Corp

The corporation has two major types: S Corporation and C corporation. However, B Corporation, Close Corporation, and Cooperative corporation are also types of a corporation in the USA. To learn about the corporation types in detail and the pros and cons of each type, read our article on What is a Corporation.

How to Form an Inc | Incorporate Your Business in 10 Easy Steps

The term incorporation means registering your business with the state and forming a legal entity that is separate from its owner. The requirement to form a corporation may vary from state to state. However, the following steps are common to form a corporation in any state:

  1. Choose a suitable and unique name for your corporation
  2. Appoint a board of directors 
  3. Appoint a registered agent
  4. File your Articles of Incorporation/Certificate of Incorporation with your state
  5. Draft corporate bylaws or operating agreement
  6. Create the shareholders’ agreement
  7. Hold initial board of directors meeting
  8. Issue shares of stock
  9. Acquire necessary business permits or licenses
  10. Get an EIN, and corporate bank account, and review tax requirements

You can follow our complete DIY guide on Form a Corporation. If you want to incorporate your business and are reluctant to do it yourself, hire ZenBusiness. You can get your corporation for as low as $49 only.

Advantages of Incorporating Your Business

One of the major benefits of incorporating your business is that it offers limited liability protection. This means that if something goes wrong and your business ends up facing a lawsuit, creditors can only go after the company’s assets—not the personal assets of its owners. This helps to protect entrepreneurs from potentially devastating losses.

Another advantage of incorporating your business is that it can help to give it a sense of legitimacy. Incorporating makes potential customers and suppliers take you more seriously—and may even make them more likely to do business with you.

Disadvantages of Incorporating Your Business

The downside of incorporating your business is that it typically requires a substantial investment of both time and money. A C corporation undergoes double taxation making putting an extra burden on the owners of a small business.

Additionally, once the business is incorporated, the owners must stay in compliance with a variety of laws and regulations. This means keeping up with corporate filings, maintaining accurate records, and following complex tax rules.

There is another business structure called a Limited Liability Company or LLC that offers similar features to a corporation and helps you avoid double taxation and other corporate formalities.

Read how to start an LLC in any state and compare S Corp vs LLC to learn which structure is best for business if you decide to be taxed as a pass-through entity.


Incorporating your business or forming a corporation has both benefits and drawbacks. When you form a corporation, the law requires you to include a word such as Inc, corp, ltd, Co., etc., at the end of your company name to specify your company structure. We hope this article has helped you understand what does Inc mean in business and how is like to incorporate your business in the USA,

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