Purpose of Articles of Incorporation
Articles of Incorporation are legal documents submitted to the Provincial, Territorial, or Federal governments within Canada which are necessary to establish your business as a legal entity.
Benefits of Filing Articles of Incorporation
By filing articles of incorporation, a company can officially become incorporated, receive favorable tax benefits, and have the ability to raise capital by issuing stock.
Key Aspects of Articles of Incorporation
- The articles specify share structure and capitalization.
- Share structure details the type and classes of shares, rights, privileges, authorized shares, and capital contributed by incorporators.
Requirements for Established Business Entities
- A Certificate of Incorporation includes important information like the registered company’s name, address, and date of incorporation.
- Both legal entities and owners are required to maintain separate bank accounts for their business.
Importance of Articles of Incorporation
Articles of Incorporation are crucial as they establish a company within its home state, informing the state of the key aspects of the business and protecting the owners’ assets from company debts and liabilities.
Registration Process
Once the Articles of Incorporation are filed with the Secretary of State, the company becomes a registered business entity within the state for legal and tax purposes.
Incorporating Business in the United States
- Articles of incorporation are often filed with the secretary of state.
- Filing fee ranges from roughly $50 to $300.
- It’s important to have the Articles of Incorporation when opening a business bank account or applying for any type of loan.
Corporate Charter Importance
Articles of incorporation are also known as a certificate of incorporation or corporate charter, which formally establishes a corporation in the eyes of the state.