Where does permission to incorporate typically come from?

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

Answer: (A)

Incorporating creates a legally recognized entity, so the permission to do it comes from the government. You file Articles of Incorporation with the state, and the state approves them, issuing a charter or certificate of incorporation. In most places, the secretary of state (or an equivalent state department) handles this process and grants the formal authorization to exist as a corporation.

The stockholders’ meeting is a governance step after formation, not the source of the legal permission. A bank loan officer provides financing, not incorporation authority. The local chamber of commerce is a business association that promotes enterprises, but it does not grant legal status to form a corporation.