Incorporation is for Corporations, not for LLCs

This post about incorporation discusses legal terminology. I have adapted it from a Quora answer that I wrote 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” is the single word that denotes “forming a corporation”. The obvious tie between the words “corporation” and “incorporation” is why the latter applies only to corporations.

Many years later, LLCs – more fully, limited liability companies – came along. Right away, we see this three-word phrase is somewhat awkward. I suppose that one could make up a related term to designate formation: “Inlimit”? “InLLC”? At best, these do not roll off the tongue.

Maybe someone will devise such a term. For now, we must live with “forming” LLCs.

You should not feel baldy for LLCs. Neither does one incorporate trusts (revocable or irrevocable), partnerships (general or limited), etc.

Check out all posts about incorporation.

Dana H. Shultz, Attorney at Law +1 510-547-0545 dana [at] danashultz [dot] com
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