What is the requirement for the name of a corporation according to formation rules?

The requirement for a corporation's name according to formation rules stipulates that it must include an indication of corporate status. This typically means that the name should include specific words or abbreviations that convey the entity is a corporation, such as “Corporation,” “Incorporated,” “Limited,” or their abbreviations (e.g., “Corp.,” “Inc.,” or “Ltd.”). This requirement is in place to inform the public and distinguish the entity from other types of business structures, ensuring clarity in legal and commercial transactions.

In contrast, while it is generally advisable for a corporation's name to be distinct and not resemble other corporations, this is not a strict formation requirement but more of an operational guideline that helps avoid confusion in the marketplace. Similarly, there are no rules mandating that the name reflect the founder's identities or limit the name to a specific number of words. Therefore, the incorporation of a designation that signifies corporate status aligns with legal guidelines for proper formation.