Articles of Incorporation?

1 Answer

Answer :

Articles of incorporation are the formal document used to create a corporation. In some states, it is called a certificate of incorporation. The articles of incorporation are filed with the Secretary of State in which the corporation is formed. The articles are then a public record and may be reviewed by anyone. A corporation may be incorporated in one state, but may have offices in other states. Due to a more streamlined corporate code and business friendly regulations, many large corporations are incorporated in the State of Delaware.Together with bylaws and corporate resolutions, the articles of incorporation make up the rules in which the corporation is operated. Unlike bylaws and resolutions, which are not required for a corporation to be valid, articles must be prepared, signed and filed for the corporation to be recognized in the state of incorporation.By analogy, articles of incorporation are like the US Constitution. As the constitution created the nation, and provided a small set of rules for governing, the articles govern the corporation in the same manner. Later, statutes were passed in congress with more detailed rules, as bylaws are passed in the corporation. As statutes cannot conflict with the constitution, bylaws cannot conflict with articles of incorporation.Normally, the content of the articles of incorporation are minimal. They will usually contain the following:The name of the CorporationIts state of incorporation and original addressThe names and addresses of the incorporators, or those who form the corporationWhether the corporation is organized for profit or as a not for profit entityIf not for profit, a statement that any profits are for the benefit of the corporation and not the shareholdersThe number of shares the corporation is permitted to issue, as well as the classes of stock the corporation is permitted to issue.The par value of each share.In most states, articles of incorporation cannot be amended merely by the board of directors or the officers. Usually a majority of shareholders must approve the amendment. Amendments often are sought to increase the authorized limit of shares the corporation can issue. This is often seen with smaller start up companies who have grown exponentially, and the need for the corporation to issue additional shares of stock.Sample articles of incorporation can be purchased with fill in lines where needed. Incorporators can also retain an attorney to prepare the articles. As the articles are public documents, and cannot be easily amended, many incorporators feel more comfortable with service of an attorney.

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