From where does permission to incorporate a business typically come?

• A. Government, usually through a secretary of state
• B. The stockholders' agreement
• C. A bank loan officer
• D. The local chamber of commerce

Answer: (A)

Forming a corporation requires official government authorization. In the United States, this permission comes from the state government, usually through the secretary of state’s office, which processes filings like articles of incorporation and issues the certificate of incorporation. This external step creates a legally recognized entity. A stockholders' agreement is an internal contract among owners, not a governmental grant of status. A bank loan officer helps with financing, and the local chamber of commerce is a business association that provides resources—not legal authorization. So the authority typically comes from the government at the state level, via the secretary of state.