Incorporation defines what aspect of a business?

Incorporation refers specifically to the process of forming a corporation, which establishes a distinct legal entity separate from its owners. This legal separation is fundamental because it provides personal liability protection to the owners, meaning their personal assets are generally not at risk for the debts and liabilities of the business. This aspect of incorporation allows businesses to operate with a level of independence from their founders, facilitating growth, attracting investment, and enhancing credibility in the eyes of creditors and customers.

The other options do not accurately describe incorporation. While the ability to pay taxes is relevant to a business, it is not defined by the incorporation process itself. The amount of capital required to start a business might be a consideration when forming a business entity, but it does not touch on the legal framework of incorporation. Lastly, marketing strategies are concerned with promoting and selling products or services and are not related to the legal structure of the business.