Several persons joining together for the accomplishment of any business or social purpose can legally organize themselves into a corporation, a form of partnership which combines the resources of all, and yet gives a limited pecuniary liability, amounting only to the amount of stock owned by each stockholder. In the States the legislature of each Commonwealth enjoys the power of regulating the corporations, and in the Territories this power is, of course, vested in the General Government. The actual cost of organization amounts to something less than $10, most of which is in fees to the Secretary of State. When the stock has been subscribed, a meeting is called and each shareholder casts a vote for every share which he owns or holds a proxy for, for each person who is to be elected director, or he may give one director as many votes as the number of shares he is voting, multiplied by the number of directors to be elected, amounts to, or distribute his votes as he chooses. Thus, if he owns ten shares of stock and there are six directors to be elected, he has sixty votes, which he can give, either ten for each director, or twenty for each of three, or sixty for one, or in any other way that he sees fit, so that his whole vote will not be more than sixty votes.

These directors meet as soon after the election as possible and choose a president, vice-president, secretary and treasurer, whereupon the corporation is ready for business.

The law in all the States on the subject of incorporating companies is very similar, and the necessary forms are to be obtained usually from the Secretary of State.