Articles of Incorporation
Articles of incorporation refer to a set of documents filled with a state body to legally create a corporation. This document must contain important information such as the name of the company, street name or address, the amount and type of stock issued and the agent of service. Also known as a corporate charter, this document is critical to any business that is just starting. It actually serves as set forth some information about your new business and establish the registration of your corporation.
Most governments require the articles to outline the purpose of the firm to ensure that it’s flexible with its operations. Some certificates of incorporation, for instance, states that the firm’s purpose is to carry out any legal activity for which it may be recognized under the general of corporation.
Other provisions highlighted may include authorities to call special stakeholders meetings, limitations of directors’ liabilities and any other actions by stakeholders. Each state has certain important provisions that must be included in the corporation and others that the company might decide to include or not to include.
What Articles of Incorporation contains
Whether you have a small business or a large company, most states require that your articles should include
· Stock information. The amount of shares that the company can issue and the value for each share.
· The new firm’s name and address. This should include the official place where the business is operating from.
· The name and the physical address of the registered agent of your business who is allowed to physically deliver legal documents on behalf of the firm.
· The firm’s purpose. This should state what the company can legally engage in so as to avoid limiting its prospects.
Writing your Articles of Incorporation
Whether you prepare them alone or consult an attorney to do it on your behalf, your articles do not have to be extensive or complicated. If you choose to prepare them yourself they will be accepted by the government as long as they contain all the required information. However, you do not have to create the articles from the scratch since there are always some pre- printed articles that you can prepare within a very short time.
Once you have prepared and signed the articles, they should be ready for filing. In the US, the articles are filled within the state where the business will operate in. Since some governments offer favorable tax and regulatory environments, they normally attract a large number of firms looking for incorporation. However, in all the states, the filing requires that you pay fees ranging from $35 to $300 depending on what your business will be engaged in.
Another important document is the bylaws that highlight how the business will be run. To form the legal backbone of the business, by-laws generally work together with articles
Articles of Incorporation Wrap up
Preparing the article is a very important step on your firm’s way to success. To ensure that your organization complies with all the requirements you must follow all the steps when filing one. If you are not sure, always consult a qualified attorney to help you.