Both terms refer to the formation and the structure of legal entities. A corporation may have properties, may sue and be sued, also conduct business in its own name. Shares can be sold, given and inherited. The shareholders’ liability is limited to their investment. Usually they do not risk their personal assets unless a lender or a seller asks them to guarantee payment of their debts. A board of directors manages the corporation who are elected by shareholders. Incorporation, on the other hand, refers to the process that created the corporation. Organizers must file articles of corporation with the state’s corporations office. The birth certificate of the corporation includes the name of the corporation which must be different from any corporations in the state and must not be misleading.
