A company that has filed incorporation papers with the Secretary of State in one of the 50 states. Incorporation limits the liability of ownersÂ’ losses up to the amount of their investment. It also relieves individuals of personal liability in the event that the company has been sued, except in certain rare situations when top corporate executives may be judged to have been at fault. Many large U.S. corporations are registered in Delaware, because its state laws are perceived to be most favorable to the companies.