Starting a business attracts its own risks, and choosing to incorporate is an excellent way to avoid losing your personal assets. It also helps you raise significant capital by allowing you to issue shares. However, incorporating comes with more work at the beginning compared to a sole proprietorship, partnership, or LLC. Part of the work is completing detailed articles of incorporation.
Your company’s articles of incorporation must be filed with the concerned government body to show that you have legally formed your corporation. This document contains information such as:
- Your company’s full name
- Physical and mailing address
- Type of stock you will issue
- Named agent for process servicing
- Name and contact of the initial directors
- Type of corporate structure
Although similar in the information required, every state has its Articles of Incorporation. This article will provide links to the articles of incorporation for every state, discuss how the documents work, and explain the differences between Articles of Incorporation and articles of organization.
How Do Articles of Incorporation Work
Articles of incorporation are the documents you must submit to establish your corporation in your state. Other names used interchangeably to refer to articles of incorporation are:
- Certificate of incorporation
- Corporate charter
- Articles of association
These documents show how your business intends to function, the governance structure, and the state-specific rules and regulations to consider. Once you receive approval, your company becomes recognized as a legal entity, and you can take advantage of the benefits that come with forming a corporation.
Articles of incorporation provide a comprehensive breakdown of your business’s purpose and future plans. You are required to define why you want to conduct business to ensure you remain compliant in your industry. The definition can be broad or specific, depending on the type of business you intend to operate.
Every state includes mandatory provisions that you must have in the document. However, general provisions that every state includes in its document are:
- Liability limitations the directors have
- Legal authority allowed to hold special meetings
- Steps stakeholders can take without having to organize a meeting
Once you file the papers in the office of the Secretary of State and receive approval, you can operate as a corporation. Your business is now eligible to obtain a business license, open a bank account, and apply for credit.
Difference Between Articles of Incorporation and Articles of Organization
The main difference between Articles of Incorporation and Articles of Organization is that the first document is used by businesses that want to form a corporation, while the second document is for those forming a Limited Liability Company (LLC).
Quote Block: A primary difference between an LLC and a corporation that features in the document is that in an LLC, owners are called members, while for corporations, they are referred to as shareholders.
Since LLCs cannot go public with shares, the articles of organization do not include that section, which is a crucial requirement in the articles of incorporation. Further, corporations must have a board of directors, requiring additional information for each director, while LLCs are not obligated to have directors.
Regarding document size and details needed, articles of incorporation require more information, making the process longer and more expensive than articles of organization.
Articles of Incorporation Laws by State
Before incorporating your business, knowing the legal requirements in your state is essential. Every state has rules or documents capturing the general and specific requirements of a corporation. The table below links to the organization in each state responsible for registering articles of incorporation.
Best States to Incorporate a Business Articles of Incorporation
While some states have more favorable regulations and financial requirements, others attract more fees, or their provisions tend to be rigorous. For example, Delaware attracts many public corporations because their laws offer more protection to investors and flexibility for entrepreneurs to conduct business.
Other examples of the most favorable states to incorporate the articles of incorporation of a business are:
- Indiana
- Colorado
- North Dakota
- Nevada
- Wyoming
- Arkansas
- Iowa
- Pennsylvania
- South Dakota
These states are preferred for starting a business as a corporation because they offer lower tax rates for new businesses, provide better access to capital, have a reliable workforce with reasonable weekly wage requirements, and have higher start-up business survival rates.
If you need help forming documents for your business, such as an operating agreement for an LLC or a business plan, an online template can make this process much easier. Make sure to find out what the procedure is in your state for registration.
Helpful Resources:
Delaware.gov - Delaware Corporation and Business Entity Laws
Starting a business attracts its own risks, and choosing to incorporate is an excellent way to avoid losing your personal assets. It also helps you raise significant capital by allowing you to issue shares. However, incorporating comes with more work at the beginning compared to a sole proprietorship, partnership, or LLC. Part of the work is completing detailed articles of incorporation.
Your company’s articles of incorporation must be filed with the concerned government body to show that you have legally formed your corporation. This document contains information such as:
- Your company’s full name
- Physical and mailing address
- Type of stock you will issue
- Named agent for process servicing
- Name and contact of the initial directors
- Type of corporate structure
Although similar in the information required, every state has its Articles of Incorporation. This article will provide links to the articles of incorporation for every state, discuss how the documents work, and explain the differences between Articles of Incorporation and articles of organization.
How Do Articles of Incorporation Work
Articles of incorporation are the documents you must submit to establish your corporation in your state. Other names used interchangeably to refer to articles of incorporation are:
- Certificate of incorporation
- Corporate charter
- Articles of association
These documents show how your business intends to function, the governance structure, and the state-specific rules and regulations to consider. Once you receive approval, your company becomes recognized as a legal entity, and you can take advantage of the benefits that come with forming a corporation.
Articles of incorporation provide a comprehensive breakdown of your business’s purpose and future plans. You are required to define why you want to conduct business to ensure you remain compliant in your industry. The definition can be broad or specific, depending on the type of business you intend to operate.
Every state includes mandatory provisions that you must have in the document. However, general provisions that every state includes in its document are:
- Liability limitations the directors have
- Legal authority allowed to hold special meetings
- Steps stakeholders can take without having to organize a meeting
Once you file the papers in the office of the Secretary of State and receive approval, you can operate as a corporation. Your business is now eligible to obtain a business license, open a bank account, and apply for credit.
Difference Between Articles of Incorporation and Articles of Organization
The main difference between Articles of Incorporation and Articles of Organization is that the first document is used by businesses that want to form a corporation, while the second document is for those forming a Limited Liability Company (LLC).
Quote Block: A primary difference between an LLC and a corporation that features in the document is that in an LLC, owners are called members, while for corporations, they are referred to as shareholders.
Since LLCs cannot go public with shares, the articles of organization do not include that section, which is a crucial requirement in the articles of incorporation. Further, corporations must have a board of directors, requiring additional information for each director, while LLCs are not obligated to have directors.
Regarding document size and details needed, articles of incorporation require more information, making the process longer and more expensive than articles of organization.
Articles of Incorporation Laws by State
Before incorporating your business, knowing the legal requirements in your state is essential. Every state has rules or documents capturing the general and specific requirements of a corporation. The table below links to the organization in each state responsible for registering articles of incorporation.
Best States to Incorporate a Business Articles of Incorporation
While some states have more favorable regulations and financial requirements, others attract more fees, or their provisions tend to be rigorous. For example, Delaware attracts many public corporations because their laws offer more protection to investors and flexibility for entrepreneurs to conduct business.
Other examples of the most favorable states to incorporate the articles of incorporation of a business are:
- Indiana
- Colorado
- North Dakota
- Nevada
- Wyoming
- Arkansas
- Iowa
- Pennsylvania
- South Dakota
These states are preferred for starting a business as a corporation because they offer lower tax rates for new businesses, provide better access to capital, have a reliable workforce with reasonable weekly wage requirements, and have higher start-up business survival rates.
If you need help forming documents for your business, such as an operating agreement for an LLC or a business plan, an online template can make this process much easier. Make sure to find out what the procedure is in your state for registration.
Helpful Resources:
Delaware.gov - Delaware Corporation and Business Entity Laws
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