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To legally form a corporation, a company must file an incorporation document with a state government. This document can also be known as a formation document or charter.
What is incorporation? While colloquially called ?incorporation,? formation is the proper term for setting up a business as its own legal entity by registering it with a state. Formation could mean you're setting up one of several legal structures, like a limited liability company (LLC) or a corporation.
The formation state ? which is also referred to as the state of organization, domestic state, or home state ? is the state in which you file your formation documents and the state whose corporation or LLC statute will govern your corporation or LLC.
Examples of State of Formation in a sentence The Company was formed on [FORMATION DATE] , when the Member(s) filed the Articles of Organization with the office of the Secretary of State pursuant to the statutes governing limited liability companies in the State of Formation (the ?Statutes?).