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Article Date:
January 2014

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Incorporating Your Proprietorship

If you operate your business as a sole proprietorship and you want to incorporate, your first step is to file incorporation documents.1


But this step alone does not transform your business into a corporation.


When you file incorporation documents, you create an empty corporation. Meanwhile, your business continues operating as a sole proprietorship, just as it always has.


To move your business into the corporate shell, you have to formally transfer the assets to the corporation in exchange for stock.


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