Archive for Terminology

Incorporation is for Corporations, not for LLCs

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This post, which discusses legal terminology, is adapted from a Quora answer that I provided almost two years ago. Q. Why do you “incorporate” corporations but “form” LLCs? Why the differing terminology?

A. Corporations have existed for much longer than LLCs. “Incorporation” was? chosen as the single word that denotes “forming a corporation”. The obvious tie? between the words “corporation” and “incorporation” is why “incorporation”? applies only to corporations and is easily understood.

Many years later, LLCs – more fully, limited liability companies – come along.? Right away, we see this three-word phrase is awkward to work with. I? suppose that one could have made up a related term to designate? formation, such as “inlimit” or “inLLC”, but, to say the least, those do? not roll off the tongue. Maybe someone will devise such a term; for? now, we must be satisfied with “forming” LLCs.

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