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The articles of incorporation are a key document that creates a company under the law, outlining its structure and methodologies. It can be a complex process, requiring a lawyer, and includes details such as the company’s name, nature of business, and duration. Once filed and accepted, the company becomes a corporation, commonly abbreviated as Inc.
The articles of incorporation comprise the key document presented to the state or governing body to create a company under the law. They are usually the last piece of a long process to create a new company and cement the key principles and details of the business.
This document can be a few short pages or it can be hundreds of pages long, which turns into legalese and details every little aspect of a complex society. Details include what the corporation intends to accomplish, (commonly the sphere of activity or nature of the nonprofit), its headquarters, the officers who may be appointed, and the primary rules established to dictate the organization and operation of the corporation.
Creating a charter is quite a difficult process and for all but the simplest corporate structures, a lawyer is a necessity. Some books, like the Nolo series, attempt to explain the steps to writing articles in a way that anyone can do, but even with such aids, an attorney is an important resource for reviewing your work.
Once the document has been filed and accepted by the state, the company becomes a corporation and can be said to have been incorporated. This is commonly referred to by the abbreviation Inc. after the company title.
The deed of incorporation includes, as the name suggests, a series of articles outlining the structure and methodologies of the company. These are arranged in a relatively standard format, which looks like this:
ARTICLE I: Nature of Business – A description of the business.
ARTICLE II: Name – The name of the company.
ARTICLE III: Duration – The duration of the activity will remain incorporated (usually indefinitely, but in some cases there may be a self-imposed limit).
And so on, as so many items are needed. Stock dealings, salaries and bonuses, a disclaimer and other general information may be included in the articles of incorporation. For smaller details, company bylaws are typically used, although some companies may choose to outline this information in articles of incorporation.
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