Preparing Articles Of Incorporation
With new business ventures and organizations mushrooming rapidly, the need to be aware of processes relating to setting up a corporation is essential. In this context, you need to be aware of those legal documents that are designed so as to establish the purpose and structure of any corporation. These are called Articles of Incorporation and are also termed as Corporate Charters or Certificate of Incorporation. These are the basic documents, which govern the rules that propel the management of any corporation. The Articles of Incorporation are to be filed with a regulatory agency or sometimes with a state.
Lets understand how and why these articles are considered as a set of primary guide that helps to manage a business.
1. For any business venture, it is advisable to incorporate your business. For incorporation, you must prepare the Articles of Incorporation.
2. Incorporating your business can provide a number of legal benefits to your business hence it is wise choice. To prepare the Articles of Incorporation, you can take help of business law firms or even individual professionals who have an expertise in the field. 3. The Article of Incorporation should present the name of the corporation. When you choose a name, note that you have to get it verified from the jurisdiction that it is a unique name and is not being used by any other corporation. 4. The name usually contains three parts, which include the distinctive element, descriptive element, and the legal part. The distinctive part is the unique name, descriptive describes your company's profile and the legal part informs the form of the corporation. Whether it is corporate or limited, this is decided by the last part of the name. 5. This Article does contain the name of the Incorporator i.e. the person who owns the corporation. It also describes whether the company is a stock corporation or a non-stock corporation. 6. The time span of your company, whether a limited time period or a permanent corporation, is also to be mentioned in these Articles. The specifications that are mentioned in these Articles may vary from one corporation to another. This can also depend upon the specific states. But most of the specifications remain the same. Note that in some cases, the state jurisdiction can ask to mention the purpose of the corporation clearly. This means that you cant write a general statement like any lawful purpose, you have to mention in explicit terms. In the U.S., the processes are different for non-stock corporations. Non-stock Corporation refers to a non-profit corporation. A non-profit corporation has to mention in its Articles of Incorporation that no part of the company' assets will benefit the members of the corporation. It also mentions the location of the office of the corporation. With this discussion, you are now aware of the legal benefits in preparing and planning for incorporation. The nuances may be dealt with later but you are now conscious of the important facts relating to the same. However, you can draft your Articles of Incorporation by yourself too but it is always advisable to hire an attorney for the purpose!
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