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Articles of Incorporation

What are Articles of Incorporation?

These are a set of legal documents filed by a government body to legally declare a new corporation. Articles of incorporation contain details like the company’s name, address, process service agent, the firm’s purpose, and the type and amount of stock that shall be issued. The ‘firm’s purpose’ however is generally kept quite broad in order to maintain flexibility. Each state has different requirements of what needs to be included and companies may choose to add other things on top of these.

For example:

  • Limitations of director’s liability

  • Authority to arrange stockholders’ meetings

  • Actions by stockholders without a meeting

To be incorporated, the company must pay a fee and sometimes a corporate franchise tax to the state.

In the U.S., articles of incorporation are filed in the state where the business has chosen to incorporate. This is done with the secretary of state. Some states in the US are preferred by businesses due to their tax and regulatory environments, and so businesses will choose to be incorporated in this state.

E.g. Delaware offer tax advantages, and it’s not obligatory for officers, directors, and shareholders to be state residents. This is why Delaware receives a huge influx of companies who wish to be incorporated there.

What is the Purpose of the Articles of Incorporation?

The Articles of Incorporation are needed to register the business with the state and to provide the basic information required to form the business.

Filing the Articles of Incorporation

Although many states allow you to file the Articles of Incorporation online, doing so can be quite complicated, and so it is advised that you get an attorney to help you out with the process so you don’t accidentally miss anything important.

If you’d like to read more, visit:

Articles of Incorporation for a Business

What You’ll Need for Company Formation

The Difference Between Articles of Incorporation and Bylaws

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