What Is the Meaning of "Inc."?


Quick Answer

The term "Inc." found at the end of many company names denotes that it is a company that has been incorporated. Incorporating a company creates a corporation, and all corporations have endings such as "Inc.," "Corp." or "Ltd."

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What Is the Meaning of "Inc."?
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Full Answer

Becoming a corporation is beneficial to many companies. It allows the owner of the company to protect his or her assets from the company's liabilities. A corporation can also be more easily transferred between owners, it often pays less tax than a personal private company would and it can sell stocks in the company to raise capital. These allow the company to take more risks in order to grow without risking the owner's or shareholder's finances outside of what was originally invested.

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