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Business Establishment and Incorporation


Business Establishment is a single business location of a company which is engaged in a single activity. The Department of Labor specifies: An establishment may also be a store, office or other physical entity that sells or produces goods or services that is physically distinct from any other facility operated by a business.


The term "establishment" is important in employment law and labor relations, because these laws apply to employees at establishments. For example, a store (establishment)owned by a company in one state may have different applicable labor laws than a store (establishment) owned by the same company in another state.


A commercial establishment means an establishment used for commercial purposes, such as bars, restaurants, private offices, fitness clubs, oil rigs, retail stores, banks and financial institutions, supermarkets, auto and boat dealerships, and other establishments with common business areas; provided that the term "commercial establishment" shall not include a multi-unit permanent or temporary dwelling where private home viewing occurs, such as hotels, dormitories, hospitals, apartments, condominiums and prisons, all of which shall be subject to the rates applicable to private home viewing.


The Incorporation this term is frequently confounded, particularly in the old books, with corporation. The distinction between them is this, that by incorporation is understood the act by which a corporation is created; by corporation is meant the body thus created.


incorporate is to obtain an official charter or articles of incorporation from the state for an organization, which may be a profit-making business, a professional business such as a law office or medical office, or a non-profit entity which operates for charitable, social, religious, civic or other public service purposes.


The process includes having one or more incorporators (most states require a minimum of three for profit-making companies), choose a name not currently used (nor confusingly similar) by any corporation, prepare articles, determine who will be responsible for accepting service of process, decide on the stock structure, adopt a set of by-laws, file the articles with the Secretary of State of the state of incorporation, and hold a first meeting of incorporators to launch the enterprise. Other steps follow such as electing a board of directors, selecting officers, issuing stock according to state laws and, if there is going to be a stock offering to the public, following the regulations of the Securities and Exchange Commission and/or the State Corporations Commissioner.


If the corporation is non-profit, it will have to apply for non-profit status with the home state, and may, if desired, also apply to the Internal Revenue Service for federal non-profit recognition, both of which require detailed explanations of the intended operation of the organization. 2) to include into a unit. (See: corporation, stock, incorporation, incorporate by reference)