Articles of Incorporation

Articles of Incorporation are documents filed with a government body to prove the creation of a corporation. Although these documents are commonly confused with bylaws, each of them still has distinguishable features that set them apart. articles-of-incorporation

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Articles of Incorporation Definition & Meaning

Articles of Incorporation are a corporation’s highest governing document.

Articles of Incorporation are documents that present basic information required by statute when a corporation is formed.

What Are Articles of Incorporation?

Articles of Incorporation are legal documents that are filed with a government agency to validate the existence of a business organization. Generally, this includes the name of the corporation and its purpose. This also serves as a means for the public to know about a company.

10 Types of Articles of Incorporation

Kentucky Articles of Incorporation

Kentucky Articles of Incorporation follows the same function of securing a corporate’s name and creating its legal entity. According to Harbor Compliance, a corporation can only apply for tax IDs, have business licenses, and sign contracts after the approval of this document. There are specific requirements imposed in Kentucky such as having one or more directors in a corporation, having annual shareholder meetings, and allowing one person to hold multiple offices.

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Kansas Articles of Incorporation

Kansas Articles of Incorporation should be filed to form a corporation. Based on a separate article by Upcounsel, starting a sole proprietorship doesn’t require a person to file any document with the Secretary of State. However, some of the following information must be included in the Articles of Incorporation to successfully form a corporation: the purpose of the Kansas corporation, closing tax month of the business, contact information and signatures of incorporators, name, and address of Kansas registered agent and effective date of the corporation.

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Iowa Articles of Incorporation

Iowa Articles of Incorporation, much like the process in other states, need to be filed with the Secretary of State. But here, they offer businesses a better way of filing these documents through their “Fast Track Filing” service. Entrepreneurs interested in or planning to turn their business into a corporation need to file their Articles for Incorporation online through the state’s digital portal.

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Nonprofit Articles of Incorporation

Nonprofit Articles of Incorporation require the following inputs: a specific type of nonprofit entity to form, names of the initial board of directors, and specific 501(c) tax exemption a nonprofit will apply for. Additionally, filing articles of incorporation does not require an attorney and anyone can act as the proprietor. Some of the benefits of incorporating a nonprofit include securing a corporate name, limiting the personal liability of directors, and adding credibility to the organization.

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Indiana Articles of Incorporation

Indiana Articles of Incorporation ensures a suitable business setup and security for new corporations. These can be filed in person, through fax, mail, or online, however, the state charges a fee that can be paid via debit or credit card. The state reminds those who are filing articles of incorporation that the information included in these documents is a matter of public record.

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Illinois Articles of Incorporation

Illinois Articles of Incorporation are one of the many documents related to corporations that need to be filed with SOS or Secretary of State either online or by mail. A corporation’s name must have a recognizable difference from the ones already on file with the Illinois SOS. The state also imposed a filing fee of $150 and an initial franchise tax payment at a rate of $1.50 per $1000 of paid-in capital represented in Illinois.

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Idaho Articles of Incorporation

Idaho Articles of Incorporation, according to its Secretary of State, must be signed by at least one incorporator listed in the article. Besides that, the state also requires any business wishing to incorporate to include the following information: corporation name, business type, effective corporate date, shares, mailing address, registered agent, Idaho incorporator, and directors. On the other hand, if one prefers to use the old paper form or whichever form not completed through the state’s SOSBiz, they will pay an extra fee worth $20.

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Hawaii Articles of Incorporation

Hawaii Articles of Incorporation should be submitted to the state’s Business Registration Division (BREG) to register a business—only then will it form a corporation. The said state also offers online submission of articles of incorporation through the Hawaii Business Express (HBE). Submitting a Hawaii Articles of Incorporation costs a minimum fee of $50 with a standard processing time that is three to five business days.

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Georgia Articles of Incorporation

Georgia Articles of Incorporations, according to the Office of the Secretary of State, may be filed online or hand-delivered to the Corporations Division. The former process charges a fee of $100, while the latter costs ten dollars more. Hence, Georgia’s Corporations Division recommends filers obtain professional legal, tax, or business advice and satisfy the requirements of the law before and after the entity’s formation.

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Florida Articles of Incorporation

Florida Articles of Corporation can also be filed online as long as the documents include necessary information for the company’s approval to be incorporated through the state’s Division of Corporations. To process this, a filing fee worth $70 is charged. In Florida, generally, the documents can be received within ten to fifteen business days and, although these can be expedited, they can only be in person.

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Articles of Incorporation Uses, Purpose, Importance

A business, without articles of incorporation, cannot transition into a corporation. And since these documents are the highest governing document in a corporation, according to the Legal Information Institute, it is only appropriate to place them on center stage. The following emphasizes the use, purpose, and importance of articles of incorporation:

Access to Capital

Corporations can issue shares of stock making it generally easier for them to raise capital. Having this benefit will essentially make any business grow and develop easily. Moreover, corporations have access to more alternative sources through which they can pay debts.

Exist Perpetually

A corporation will continue to exist or operate even with the death of its owners and executives. This is why it is easier to transfer ownership of a company to another entity for incorporation. In addition, corporations are more permanent than unincorporated companies because the latter can be terminated by the death or withdrawal of its owners.

Acquire Tax Advantages

Basically, what this means is that incorporated businesses acquire tax cuts. However, this does not apply to all states. In states that allow businesses to enjoy this benefit, corporations would be able to enjoy tax cuts on some operating costs which include employee wages, insurance costs, investments in green energy, and retirement benefits.

Protect from Liabilities

Incorporations operate as a separate entity from the owners which means that the owner’s personal assets are protected from business liabilities. In other words, corporations are responsible for their own debt. Business owners can continue operating without the risk of losing their lands, cars, or any other personal assets.

Enhance Corporate Image

Ultimately, having articles of incorporation filed and approved, hence the incorporation of a business, makes a company more credible and trustworthy. Often, corporations are perceived by customers, suppliers, and business associates as more stable compared to unincorporated businesses. This could be the reason why an “Inc.” or “Corp.” in the business name makes people think the company is stable and committed.

What’s In The Articles of Incorporation? Parts?

Name of Corporation

Most states require a business filing articles of incorporation to put or abbreviate the word “Corporation” or “Incorporation” within its name.

Address of the Corporation

Basically, this is where the location or site of the corporation would be.

Type of Corporation

A business must put the type of corporation it wants to register which may be among non-stock, stock, or nonprofit.

Name and Address of Registered Agent

Providing the name and address of a business registered agent is important since they are the ones to receive important and legal documents on behalf of the corporation.

Names and Addresses of Initial Directors

Similar to the registered agent, the names and addresses of initial directors must be included in the documents because they are the people who will be managing the corporation.

Name and Address of Incorporator

The name and address of the incorporator must also be included in the articles of incorporation since this person is responsible for providing legal documents that the state requires.

Duration of Corporation

The company or business should indicate in the documents if it will operate indefinitely or for a definite period of time.

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How To Design Articles of Incorporation?

1. Choose an articles of incorporation size.

2. Determine the purpose of the articles for incorporation.

3. Select an articles of incorporation template.

4. Determine all the information needed for the completion of the documents.

5. Organize the data required by a particular state to be included in the articles of incorporation.

6. Input all the necessary information on the physical form or online form.

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Articles of Incorporation Vs. Operating Agreement

Articles of Incorporation, also known as Certification of Charter, legally identify a business entity.

An Operating Agreement is a legal document used by Limited Liability Companies (LCC) to outline their business’ financial and functional decisions.

What’s The Difference Between Articles of Incorporation, Bylaws, and Corporate Resolution?

Articles of Incorporation are key documents that certify the creation or existence of a corporation,

Bylaws are rules made by a company or society to control its members’ actions.

A Corporate Resolution is a legal document composed by the directors that declare substantial corporate decisions.

Articles of Incorporation Standard Sizes

Articles of Incorporation sizes vary depending on the format a particular state may impose. Nonetheless, these are the standard sizes for these documents:

  • Letter (8.5 × 11 inches)
  • Legal (8.5 × 14 inches)
  • A4 (8.3 × 11.7 inches)

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Articles of Incorporation Ideas & Examples

Producing legal documents can be different for each state. Here are some articles of incorporation ideas and examples you can consider using when making one:

  • Delaware Articles of Incorporations Ideas and Examples
  • Connecticut Articles of Incorporations Ideas and Examples
  • Colorado Articles of Incorporations Ideas and Examples
  • California Articles of Incorporations Ideas and Examples
  • Articles of Incorporations Worksheet Ideas and Examples
  • Arkansas Articles of Incorporations Ideas and Examples
  • Arizona Articles of Incorporations Ideas and Examples
  • Alaska Articles of Incorporations Ideas and Examples
  • Alabama Articles of Incorporations Ideas and Examples
  • Articles of Incorporations For Nonprofit Organization Ideas and Examples

FAQs

What is an Article of Incorporation and Why is it important?

An Articles of Incorporation includes key information about a business and it is important because, without it, a company can’t legally operate or exist.

What are the rules for an Articles of Incorporation?

Some of the rules for an Articles of Incorporation are filing the said documents with the secretary of state, paying the filing fee, and including essential information about the company.

Why do companies choose Articles of Incorporation?

Companies choose Articles of Incorporation because doing so benefits the company, in most states, compared to unincorporated businesses.

What are the contents of the Articles of Incorporation?

Articles of Incorporation should include the name of the company, the business address, the names and addresses of the registered agent and initial directors, and the effective company date.

How do you write Articles of Incorporation?

To write Articles of Incorporation, simply provide the details or information that the legal document is required.

What are the requisites of the Articles of Incorporation of a company?

The Articles of Incorporation must have a company name, company address, type of company, address of the registered agent, corporate purpose, personal information of the first board of directors, and personal information of incorporators.

Why are Articles of Incorporation important for business?

Articles of Incorporation certify the existence of a corporation, therefore, allowing them benefits such as protection from liabilities, tax cuts on some operation costs, and much more.

What should be included in the Articles of Incorporation?

Articles of Incorporation should include truthful and important information about the company filing the said documents.

How do you file Articles of Incorporation?

Nowadays, filing Articles of Incorporation has been made easy through online forms and services implemented by states around the country but, of course, filing these documents in person is still an option.

What are the significant contents of the Articles of Incorporation of a cooperative?

The significant contents of the Articles of Incorporation of a cooperative include its name; mailing address; names and addresses of its registered agent, board of directors, and incorporators; type of company; and effective company date.