Below are the major pros and cons of incorporating a business. Make sure you discuss these advantages and disadvantages with your legal or financial adviser before making your decision.
Filing Articles of Incorporation allows your business to take advantage of the corporate tax and legal benefits of the state where you incorporate. But first, you will need to file Articles of Incorporation with that state’s Secretary of State when creating your business.
The Articles of Incorporation sample below details the establishment of the corporation, “ABC, Inc.” The formation document contains basic information about ABC, Inc., such as the:
The principal place of business is where the company conducts its primary operations.
The name of your corporation is one of the most important decisions you make when incorporating your business. Make sure your preferred company name is available to prevent your Articles of Incorporation filing from being rejected.
The total number of authorized shares, type of stock, and par value of the stock. Note that you’ll want to include a stock certificate when issuing corporate stocks.
The registered agent is the person or business entity who receives legal notices and paperwork for the corporation. Most states allow a natural person, state resident, corporation, limited liability company , limited liability partnership , or statutory trust to be designated as your registered agent. Additionally, in some states your registered agent must procure a certificate of authority to conduct business within that state if they are not a domestic entity.
The person or business who will receive relevant legal notices and paperwork.
A formally incorporated business legally separates you from your company. The owner cannot be held personally liable for company debts, obligations, or risks.
Corporate bylaws are the everyday rules and guidelines of running a business, such as not mixing your personal debts and assets with those of your business. Additionally, Articles of Incorporation and Bylaws may be needed to formalize the incorporation process.
These company formation documents need to answer the following basic questions:
The statement of purpose in your Articles of Incorporation should clearly explain what your business plans to do as a corporation. Many companies use an open-ended and broad statement of purpose in case they expand businesses or operations.
This is the length of time the corporation will exist. Often the default is “perpetual,” meaning there is no set end date.
The person who will manage daily business affairs .
Keep in mind that your business doesn’t need to operate exclusively in the state where you incorporate. However, many states require companies to file “ business articles of incorporation template foreign registration” documents if they are an out-of-state entity incorporated elsewhere and doing business in their state.
The physical address of your corporation must be stated.
If the resident agent is an individual, you need to include the individual’s address of residence.
If you have a moment, a review would mean the world to us .
Articles of Incorporation are typically used when a company wants legal recognition as a business entity. They give a business liability protection and reduce its tax rates based on the laws of its particular state , making them an attractive option for many enterprises.
The officers are the person who will manage daily business affairs for the company.
If you don’t file Articles of Incorporation and wish to remain an unincorporated business, the law will treat you and your business as one entity — known as a sole proprietorship . As a sole proprietor, creditors can go after both your personal and company assets for a business debt.
This is the unique name of your business entity. There cannot be duplicate corporation names within a single state.
Authorized capital is the amount of stock the company will issue, and it determines the worth of an incorporated company. Include information like the total number of authorized shares, type of stock, and the par value, if any, in your Articles of Incorporation.
Some states allow the liability of their directors and/or officers to be expanded, limited, or entirely eliminated.
The time when your corporation will close its books for accounting and tax purposes .
We’ve compiled each state’s online business search database for your convenience.
Home Legal Documents Articles of Incorporation
An annual fee based on the company’s net worth or capital held.
This will be the date when your business officially transitions to a corporation. The future effective date must be within 90 days of filing the Articles of Incorporation.
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With our online builder, your Articles of Incorporation will include the following required details:
The person who will oversee the overall affairs of the corporation.
Articles of Incorporation are a set of formal documents that contain the basic information needed to form an incorporated business .
The director is the person who will oversee the overall affairs of the company.
A one-time fee ranging from $35–300 when you first file your paperwork.
The reason your corporation is being created.
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Articles business articles of incorporation template of Incorporation Requirements & Free Template
While our downloadable Articles of Incorporation template meets the requirements of most states, we still strongly recommend you use our online form builder above to create Articles of Incorporation customized to your state laws.
The incorporator is the person who prepares and signs the Articles of Incorporation and files them with the Secretary of State.
Use our Articles of Incorporation form to create a corporation.
Once the Articles of Incorporation are filed with the Secretary of State, the company becomes a registered business entity for legal and tax purposes within the state.
A person at least 18 years old who is setting up the corporation.
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