When you register a business as a corporation in the United States, it becomes a legal entity that is separate from the owners. This can be a good way to protect your business from lawsuits, and other legal risks.
Incorporation varies on a state-by-state basis, but the basic process involves creating articles of incorporation, filing them with your state’s business filing agency, and paying a filing fee. Incorporators must also prepare a corporate bylaws document that describes the rules for the corporation.
Articles of Incorporation
A corporation’s articles of incorporation, Visit This Page – Local Incorporation also called a certificate of incorporation or memorandum of incorporation, are the most important documents that are filed with the state when forming a corporation. These documents contain important information about the company, including its name, address, and purpose.
The articles of incorporation are an important part of the formation process, as they provide a framework for the corporation to operate. They also provide a foundation for the other documents that a company will need to create, such as bylaws and a certificate of formation.
Articles of Incorporation (AoI)
AoIs are a formal document that explains the corporation’s structure and outlines the rights of shareholders, directors, and officers. AoIs also set out the corporation’s responsibilities and duties, as well as its financial statements.
Articles of Incorporation can be prepared in many different ways, depending on the jurisdiction. They can include a variety of provisions that alter default rules or provide additional options for the corporation’s operation. Some states, for example, allow corporations to “opt out” of certain statutory rules and give shareholders the right to fill vacancies on the board of directors. Similarly, states may permit corporations to establish “cumulative voting provisions” that enhance the voting power of shareholders.
Other optional provisions can be included in the articles, such as an option to authorize the issuance of preferred stock, which provides more security to the corporation’s investors. These can be helpful for companies that want to take advantage of tax incentives offered by a specific state.
A registered agent is the individual or business that will receive official mail and other legal documents on behalf of a corporation. This person or company must have an office in the state where the business is incorporated.
Choosing a name
When you are incorporating, it is important to choose a business name that is unique and available. You can do this by using online directories that will help you search for existing names and determine whether they are currently in use or not.
Once you have decided on a name, you must submit it to your state’s office of the secretary of state or attorney general for review and approval. The name must also be distinctive and not be the same as or close to another business in the state.
The company’s business purpose explains the incorporated tasks that the company will perform and the products or services it will offer. It can be general, indicating that the company will carry out all lawful business in the state, or it can be specific, describing the exact type of goods or services the company plans to provide.