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Articles of Incorporation

Last updated Friday, February 12, 2021

 

Articles of incorporation are the documents that establish a company as a separate enterprise. To incorporate an enterprise, you will need to file the appropriate paperwork with the state authorities. In contrast to a sole proprietorship or basic partnership, a company or LLC has to be created with the state, and every state has its own incorporation requirements. The articles eventually turn out to be a public report and supply essential details about the company, its identity, contact info, and details about its shares of stock.

 

In some states, you may be asked to offer additional information regarding the way in which you intend to file taxes if you're submitting for an LLC. You do not have to incorporate a business plan or proof of economic solvency. The paperwork can be filled out online, or you can print the appropriate forms and fill them out, prior to submitting it to the secretary of state within the state that you wish to incorporate. The paperwork should be accompanied by your incorporation fee payment. The fee varies by state.

 

Once the articles of incorporation are filed, the company begins to exist formally. You can't begin describing yourself as a company or an LLC until the submission of the articles of incorporation process is complete. In some states, you may obtain a certificate of incorporation, which states that what you are promoting is in good standing. Ensure you save that certificate, in addition to a copy of your articles of incorporation.

 

Many U.S. states require these articles to outline the primary function of the company. Some companies may choose to describe its purpose broadly to remain flexible in its operations. Additional provisions covered in these articles could include the limitation of the administrators’ legal responsibility, available actions that can be taken without a formal meeting, and authority to organize special meetings with counsel.

 

Every state has necessary provisions outlined, which must be contained within the articles of incorporation, and different non-obligatory provisions that the corporation can use.

 

There are differences from state to state, which means that some states provide a more favorable environment for regulations and tax benefits. This difference explains why some states are more popular than others.

 

For instance, two of the most popular states are Delaware and Nevada. These two states incorporate almost half of all public companies, partially due to the tax benefits they provide, and because shareholders, administrators, and officers aren’t required to be residents of these states.

 

 

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Revised February 12, 2021 10:56 AM

 

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