What is Articles of Incorporation?

Articles of Incorporation can be defined as the legal documents that are created when a new corporation starts its operation. These documents are to be submitted to the government bodies and it consist of a few essential components, including but not limited to, the name of the company, its address, type of shares the company plan on issuing, and the location of the firm. Commonly known as the certificate of incorporation, this set of documents must be issued compulsorily.

Most companies based in the United States and Canada start their operations as corporations. In order to be declared as a certified corporation, these companies are supposed to abide by certain conditions and regulations issued by the corporate law of the state. In fact, these organizations have to follow each mandatory step to be recognized as a certified corporation. One of the important steps for being regarded as the corporation is submitting a document called “certification of incorporation”.

What is the Articles of Incorporation Required for?

It is mandatory for all startups to get their corporation registered with their respective states. The articles of incorporation tell you everything you need to know about getting started with a corporation in the state. It specifies the basic information required to build a corporation. If your business is established in the United States, then the articles of incorporation will be registered with the office of the secretary of your state.

In some regions, the tax and corporation-based regulations are quite flexible. That’s the reason why these states draw the attention of a large crowd. Aspiring business owners are often on the lookout for areas where there are flexible regulatory requirements.

They set up their business in states with a fair tax environment. Take Nevada and Delaware states, for example. Owing to their flexible terms and conditions concerning the corporations, these regions attract a majority of the corporations found in the United States. Once the company is established, people will consider the articles of incorporation when referring to the information about the company. The article will be available to the public once the corporation is established.

What does Articles of Incorporation Contain?

The articles of incorporation could differ depending on the state you are in. It mainly consists of the basic information about the organization, such as the name of the company, location of the agent, type of organization, list of the board of directors the corporation has elected for the Fiscal Year, the total number of as well as the type of shares the company plans on issuing in the coming years, details of the incorporator.

Basically, the business owner or the person who is working on the particular project will be responsible for leaving the name, signature, and address in the document. This information is to be provided compulsorily in order to establish the firm. Some states make it necessary for people to mention the purpose of their firm in clear terms in the Articles of Incorporation.