Company formation documents prove a business is properly licensed and are required before a business can legally operate. Different companies need different documents. For example, a corporation requires Articles of Incorporation, while an LLC needs Articles of Organization. Most businesses will also need an Employment Identification Number and a Business Name Registration Form.
There are three main company formation documents: the certificate of incorporation, the memorandum of association, and the articles of association. When a business is incorporated, it becomes a legal entity separate from its members. These documents contain important information such as the official business name, address, the primary purpose and activities of the company, ownership percentages, shares, management roles, capital contributions, and the distribution of profits and losses. They also describe the decision-making processes and are typically added to a public register and made available online.
To form a corporation, Articles of Incorporation must be filed with the state. This document includes the business name, address, purpose, and registered agent. Bylaws are also created to outline control within the organization. Formation documents serve as a guide for entrepreneurs as they begin forming and organizing their business, while operational documents take over to control the activity, ownership, and control of the business as it operates. Commonly, the Articles of Incorporation are also referred to as a Certificate of Incorporation. The presence of a registered agent ensures that a business’s legal and tax documents are received discreetly, and it provides the flexibility to move the business location without necessarily filing more paperwork.