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What Are Articles of Incorporation? A Comprehensive Legal Overview
Definition & Meaning
The Articles of Incorporation is a legal document required to establish a corporation in the United States. This document is filed with the Secretary of State or a similar state authority. It typically includes essential information about the corporation, such as its name, address, purpose, and details regarding stock issuance. The Articles of Incorporation serve as the corporation's charter and outline its structure and governance.
Table of content
Legal Use & context
Articles of Incorporation are primarily used in corporate law to formally create a corporation. This document is crucial for businesses seeking to limit liability and establish a legal identity separate from their owners. It is relevant in various legal contexts, including business formation, compliance, and governance. Users can often manage the filing process themselves using templates available through resources like US Legal Forms, but consulting with a legal professional is advisable for complex situations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A small business owner wants to start a bakery. They file the Articles of Incorporation with their state's Secretary of State, including their business name, purpose, and the number of shares they intend to issue. Once approved, they can legally operate as a corporation.
State-by-state differences
State
Filing Fee
Required Information
California
$100
Must include purpose and number of shares.
Delaware
$89
General purpose is acceptable; no specific details required.
New York
$125
Must state the specific purpose of incorporation.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Bylaws
Internal rules governing the management of a corporation.
Certificate of Incorporation
Another term for Articles of Incorporation, often used interchangeably.
Operating Agreement
A document outlining the management structure of a limited liability company (LLC).
Common misunderstandings
What to do if this term applies to you
If you are considering incorporating your business, start by gathering the necessary information outlined in the Articles of Incorporation. You can use templates from US Legal Forms to assist with the process. If your situation is complex or you have specific legal questions, consulting with a legal professional is recommended to ensure compliance with state laws.
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