How are private sector organizations incorporated?

How are private sector organizations incorporated?
A current privately owned company can incorporate by filing a request to your government that deals wit business/government services (this process can greatly change from nation to nation).

Once you are approved in your country as a corporation (meaning that the business that was previously private is now its own entity and has no direct owner linked to it), Then you will need to manage your stocks or shares which are basically monetary holdings that people purchase from a company in the hope that the value of the stock will increase, or dividends are regularly paid to investors.

Once you are incorporated, you will own all of these stocks, leaving you with 100% control over the business just like when the organization was private. The stocks that you will sell to investors can be valuated by dividing the total amount of capital and assets that the corporation owns.

There are a few ways you can continue here: you can hold most or all of your stocks and grow your business, sell them to family and friends, or sell them publicly.

Selling to friends, family and the public is a great way to expand your company, as the stocks that are purchased will earn you money to spend that you otherwise wouldn't have. The capital that you already had invested is backing these stocks, so you must understand that this isn't free money, but more of a loan with collateral. The money from selling stocks can quickly increase your available cash, thus affording you more employees, equipment, materials and other required items.

The stocks will not stay the same price. They will increase in value when your profits get higher, and lose value when your expenses are high. Externally, they can gain money by an increase demand (esp. with fast growing orgs.) due to steady profit margins, or noticeable growth. This speculation can also reduce the demand of your stocks, making them worth less than favourable. If, for example, a well-known economist writes an article about your company and how it is fated to lose much of its ground to competitors, people will often take that advice as a truth and as people try to sell their holdings and no one buys them, the price can crash quite hard.

"Speculation can make something the truth that would have never been, had it not been speculated as such" -Me

Remember that if you hold under 50% of your stock that you are sacrificing your full control over the corporation's direction. Sometimes it can be good to have other leaders with more experience run the organization, but you should consider all the consequences involved of each option first.