We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a Corporations Charter? A Comprehensive Legal Overview
Definition & Meaning
A corporation's charter, also known as articles of incorporation in some states, is a legal document that establishes a corporation's existence. This document must be filed with the state government to officially incorporate a business. It typically includes essential information such as the corporation's name and address, its general purpose, the types and number of shares it will issue, and any special characteristics, such as being a non-profit organization.
Table of content
Legal Use & context
The term "corporation's charter" is primarily used in business law. It is essential for the formation of corporations, which can be for-profit or non-profit entities. The charter serves as the foundation for the corporation's legal identity and is required for various legal and financial activities, including opening bank accounts and entering contracts. Users can manage the incorporation process themselves using legal templates from services like US Legal Forms, which provide ready-to-use forms drafted by attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A group of entrepreneurs wants to start a tech company. They file their articles of incorporation with their state's Secretary of State, including their business name, address, purpose, and share structure.
Example 2: A non-profit organization aims to provide educational resources. They submit their corporate charter detailing their mission and the types of shares they will issue, if any. (hypothetical example)
State-by-state differences
State
Requirements for Articles of Incorporation
California
Requires detailed statements about the corporation's purpose and the number of shares.
New York
Requires a specific statement of the corporation's purpose and the duration of the corporation.
Texas
Allows for a more general purpose statement and fewer requirements for non-profits.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Articles of Incorporation
The formal documents filed to create a corporation, often synonymous with a corporation's charter.
Corporate Bylaws
Rules that govern the internal management of a corporation, separate from the charter.
Certificate of Incorporation
A document issued by the state confirming that a corporation has been legally established, often used interchangeably with the charter.
Common misunderstandings
What to do if this term applies to you
If you are looking to incorporate a business, start by gathering the necessary information for your corporate charter. You can use templates from US Legal Forms to help you draft your articles of incorporation. Ensure you comply with your state's specific requirements. If the process seems complex, consider consulting a legal professional for assistance.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.