After incorporation, you can raise capital quickly through the sale of stock. By making your business a legal corporation, you protect yourself from the company’s debts. The bylaws help to keep a corporation running smoothly by outlining the rights and responsibilities of the shareholders and board of directors.Ī business owner benefits from articles of incorporation in several ways. Some states also request a copy of the company bylaws. When filing, the business owner lets the state know the corporation’s purpose, the name and address of the registered agent, the number of authorized shares and amounts of common stock, and the names of any incorporators. Why are articles of incorporation important?Īrticles of incorporation are important because they establish a company within its home state, informing the state of the key aspects of the business. Bylaws work in conjunction with the articles of incorporation to form the legal backbone of the business. This type of legal document contains general information about the corporation, such as the business’s name and location.Īrticles of incorporation are easy to confuse with bylaws, which lay out the rules and regulations that govern a corporation and help to establish the roles and duties of the company’s directors and officers. The articles of incorporation, sometimes called a certification of formation or a charter, are a set of documents filed with a government body to legally document the creation of a corporation. Here’s what you need to know about one of the first and most important steps of incorporating your business: filing your articles of incorporation. Thinking of a business idea is hard enough, but then comes countless legal documents to fill out and technicalities to deal with, especially if you’re structuring your company as a corporation. Starting your own business is a big step, and the legal issues involved can be confusing. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |