1) What exactly happens when a business is incorporated? (Is that when it becomes a company? )?

Question

2) WHat is the legal definition of a company director?

Answer 1

When  a business is incorporated it is registered by the state ( normally your home state) it receives its charter, it is kind of like a birth certificate. That is because the business becomes separate from the owner operator.  It becomes kind of like its own person. It can enter contracts and has rights to act and defend itself.

Directors are elected by shareholders to direct the company. They in turn appoint officers ( President, Secretary and so on)  Check out www.about-small-business.com, it has some good basic straight forward info. Hope that helped you.  

Answer 2

(1) You can accept contracts, you and your company will become separate legal entities.

(2) Directors are managers or agents of the company, representing the shareholders or the true owners of the company.

Answer 3

1]

i) the company become a legal entity that is a separate person from those who formed it and run it.

ii) company members and directors get limited liablity protection.

In the event of the company owing money to its creditors, the only debt members will owe is the remaining amount they have to pay for the shares they owe. if they have fully paid for the shares they will not owe anything else.

iii) The company own its own property, members have no legal claim to the company's property.

That's what happens when a company becomes incorporated, there are a couple more benefits.

2]

definition of a director; someone who runs the company (but doesn't have to manage it) and is a representative of the company.

that's the short of it.