What are Articles of Incorporation
Article of incorporation refers to legal document that is filled in order to publicly create a corporation. It is usually the final piece after the lengthy and tedious task of creating a corporation. Articles of corporation contain all the key details of the corporation. They try to explain the ownership of the corporation, the working environment among many other specifications. An article of corporation can be very short or long depending on the nature of the incorporation. Some of the important information you will find in an article of incorporation include the common spheres of the corporation or what the corporation is meant to achieve, rules that govern the corporation, the headquarters of the corporation plus some name of officers that should be named in the corporation.
It can be very tiresome to create a document or an article of corporation. It is recommended that when creating an article of incorporation you should have an attorney to help your prepare the legal document. The forms for filling the article of incorporation are available in relevant government agencies depending on the country or state. Some governments even avail the forms online so that individuals can get to fill the forms online and submit them at ease. There are some legal laws that govern the articles of incorporation so that individuals don’t end up filling too much unnecessary information or providing very limited information about the corporation.
There are usually samples availed online in which you can follow while filling in the forms to avoid errors and mistakes. The best you can do is downloading multiple of the samples and verify which fits best your organization. After you have filled in your form make sure that you have a legal representative check the article of incorporation to make sure that all the information provided are correct and in the correct manner. The legal representative also makes sure no important details are left out.
There are several advantages of filling in an article of incorporation. One of the advantages is that an article of incorporation ensures continuity of the corporation in that even if there is a change of ownership or business the corporation will still exist. Incorporation also limits liabilities; for an incorporated business the share holders are limited to their shares i.e. in case of debts incurred by the business there assets cannot be seized unless of course they have a personal guarantee. Nevertheless the corporation enjoys all the business benefits including ownership of property.
An incorporated company also has the ability to raise money easily and ensure continuous growth of the business. As much as the company may have the obligation of borrowing loans it may also sell shares and incur equity capital. In conclusion there are many benefits associated with article incorporation.