Tashkent financial institute department of finance from "finance"

Of the words enterprise and corporation, enterprise represents the more general term for a business. Anyone can call their company an enterprise. In fact, corporate enterprise could even add the word to company's official name if company wish. Although it is not always the case, some people reserve the word enterprise for entrepreneurial endeavors, such as startups or other innovative and new company ideas.

Unlike the word enterprise, which can be used freely to describe any company or business, the word corporation is reserved only for businesses that have completed a legally binding process. The process of incorporation means that the business itself is an entity completely separate from the person who founded it. For example, many professionals and entrepreneurs choose to incorporate a business in order to protect their personal assets. Should a disgruntled customer sue the company, the owner's personal assets will not come under fire. A corporation is sometimes referred to as a "legal person" due to the rights and obligations such a business enjoys. Corporations must pay taxes, can borrow money, hire individuals, enter into contracts and sue or be sued.

In order to become incorporated, a company's owners and shareholders file an application with the secretary of state in the business primary state of operation. The application must include the names and addresses of the shareholders filing the application, as well as a statement of purpose. Both nonprofit and for-profit organizations can become incorporated⁶.

Incorporated means that corporate enterprise has gone through the steps to formalize business as a corporation. When a company is incorporated, it states its formal name as "Company XYZ, Inc." Incorporate in a particular state, and the specific rules for incorporation vary somewhat by state. Typically, though, file articles of incorporation that state business purpose, anticipated activities, directors, shareholder and investment plans and a physical address.