Overview of Articles of Incorporation
Articles of incorporation legally document a corporation’s creation. They are filed with a government body. The articles lay out how tasks are accomplished in the organization.
Purpose and Benefits
- Keeping owners protected from liabilities is a key purpose of articles of incorporation.
- Filing articles of incorporation provides favorable tax advantages, ability to issue stock and raise capital, or shield owners from liability.
Key Information
Articles of organization include the LLC’s name, location, purpose, and effective start date. The articles keep a business entity’s assets separate from owners’ personal assets.
Comparison: Articles of Organization vs. Articles of Incorporation
- In the United States, limited liability companies (LLCs) have articles of organization whereas corporations have articles of incorporation.
Bylaws for Nonprofits
Bylaws outline detailed rules and procedures for managing a nonprofit. All nonprofits must file articles of incorporation with the proper state agency.