DISINCORPORATION Meaning and
Definition
-
Disincorporation is a term that refers to the process of converting a corporation, which is a legally recognized entity separate from its owners, into an unincorporated form. It involves the dissolution of the corporation as a legal entity, resulting in the loss of its independent status and reverting it back to its constituent parts. This usually entails a change in the legal structure of the organization, transitioning from a corporation to a partnership, sole proprietorship, or other form of unincorporated business.
The reasons for disincorporation can vary. It may be prompted by a desire to simplify the legal and administrative requirements associated with running a corporation, as unincorporated businesses typically have fewer regulatory and reporting obligations. Disincorporation can also be driven by tax considerations, as the tax treatment of unincorporated businesses may differ from that of corporations, potentially offering certain advantages.
Disincorporation can generally be accomplished through a legal process that involves filing the necessary paperwork with the appropriate government authorities, such as the state or federal agencies responsible for overseeing business registrations. The process may involve obtaining the consent of shareholders or members, amending the corporate bylaws, and complying with any specific legal requirements of the jurisdiction.
It is important to note that disincorporation can have significant legal and financial implications. Business owners considering disincorporation should consult with legal and tax professionals to fully understand the potential consequences and ensure compliance with all applicable laws and regulations.
-
Deprivation of the rights and privileges enjoyed by a corporate body.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for DISINCORPORATION
- sisincorporation
- xisincorporation
- cisincorporation
- fisincorporation
- risincorporation
- eisincorporation
- dusincorporation
- djsincorporation
- dksincorporation
- dosincorporation
- d9sincorporation
- d8sincorporation
- diaincorporation
- dizincorporation
- dixincorporation
- didincorporation
- dieincorporation
- diwincorporation
- disuncorporation
Etymology of DISINCORPORATION
The word "disincorporation" is derived from the prefix "dis-" meaning "apart" or "away", and the verb "incorporate", which comes from the Latin word "incorporatus", meaning "united" or "joined together". "Incorporate" itself comprises the Latin prefix "in-" meaning "in" or "into", and the verb "corporare", meaning "form into a body" or "unite". So, "disincorporation" can be understood as the process of undoing or reversing the act of incorporating, referring to the dissolution or termination of a corporate entity.
Infographic
Add the infographic to your website:
