Owner of the corporation

When a business owner incorporate a corporation, the business owner has to decide who will be the owner or owners of the corporation. Business owners of the corporation are also stockholders of the corporation shares.

Incorporating an existing business

Incorporating a sole proprietorship

If a business owner is incorporating an existing business, it means your already have a business in another legal form such as sole proprietorship or a partnership. The business owner now wants to change the corporate form. In a sole proprietor 's case, the business owner is probably the only shareholder or stockholder of the corporation to be incorporated.

However, since incorporating a business makes transfer of ownership easier and makes estate planning and asset protection more meaningful, being the sole share holder may not be what a business owner wants.

Example of when a business owner may want to incorporate jointly with his or her spouse

An example is if a business owner wants to issue the stock in a corporation to himself or herself and his or her spouse jointly (assuming you have a stable marriage), as that would enable him or her to easily continue the operation of your business if you should die or become disabled.

Incorporating a partnership

If a business owner is already operating his or her business as a partnership and the business owner and his or her business partner have decided to incorporate, the stock normally would be issued in the same proportions as are the present percentages of ownership of the partnership.

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