Many Details On Articles Of Incorporation
20 May 2010Articol publicat in: Corporate, Internet
Have you ever thought that you might like to be your own boss? Would you choose to start up a small business or a corporation? Have you ever wondered what the differences were between them? Well, if you have, read on and learn about being incorporated and the Articles Of Incorporation.
We should start by talking about what a corporation really is all about. It is a business that is a legally acting person, but completely separate from the shareholders or persons who own it. It can receive loans, make loans, it must pay taxes, it can hire and fire, and it owns property and assets. It also handles any suits filed against it.
It would be too good to be true if there were not any disadvantages, but lets start on a happier note and look at the advantages first. Limited liability is an advantage for the shareholders, who benefit a great deal. They can not be held personally liable for any of the debts of the corporation or and liability incurred by any suits filed against it. The law makes a very distinct separation between the corporation and the shareholders, and they will only lose what the have paid out in actual shares of stock.
The disadvantage of a corporation is that it can be taxed on two separate levels. Corporations are taxed, and then each shareholder is taxed on dividends received.
If you choose to incorporate, this is where filing Articles of Incorporation comes in. These are actually documents signed by the Secretary of State in a specific state. The state is able to then issue a Certificate of Incorporation that allows the business to operate as a corporation.
When a business has both articles and the Certification of Incorporation, the two together become a Charter and gives the corporation a legal life. When Articles are then supplied to the business by the Secretary of State, the corporation will be required to file them with the recorder of deeds, in the appropriate county where the corporation exists.
Included in the articles would be information regarding the corporations name, stockholder shares, stock, incorporators, directors, property, and gross revenue.
They also describe the function of the business and of each of the shareholders, it may also list the function of others in charge of the company. Bylaws are in a separate document, and these are a list of rules for the company.
The Secretary of State requires that you file an annual report with their office if you are a corporation, in order to update the office of any changes in the corporate structure.
Here comes the good news, you can file online if you decide to go the corporate way. It will be as simple as filling in blanks.
Now that you have the information on corporations, and are aware of some of the advantages and disadvantages, you are ready to use your newly gained facts regarding Articles of Incorporation.
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