Incorporation Certificate: Everything You Need to Know
An incorporation certificate is an important element for any business. Mainly, it allows shareholders to steer clear of personal liability.3 min read
An incorporation certificate is an important element for any business. Mainly, it allows shareholders to steer clear of personal liability. With this assurance, shareholders only risk the amount of money they paid for their stock.
Every year, hundreds of thousands of businesses seek incorporation certificates. To no surprise, the largest businesses across the globe are fully incorporated.
To conduct business, a nonprofit organization needs:
- Articles of incorporation.
- Board minutes.
Articles of incorporation are filed with the secretary of state, sometimes referred to as the department of state. No matter where you live, the articles of incorporation are necessary to establish a for-profit business. They register your company's name, and they establish your intent to carry out business as a domestic entity. Once the state approves your application, you will be eligible to hold your first board meeting and begin operating.
Key Elements of the Articles of Incorporation
You only want to include a few basic elements in your articles of incorporation. Businesses who establish in-depth articles of incorporation make it more difficult to change the corporate structure later on. It is best to keep the articles of incorporation short and your bylaws long and detailed. Here are some of the key elements you will want to include:
- Corporate name.
- Corporate address.
- Type of corporation.
- Director information.
- Registered agent.
- Share structure.
When you indicate your corporate name, be sure to include the exact spelling and punctuation, as well as any identifiers, such as "Inc." or "Co." In many states, you can search online at the secretary of state's website to see if your name is available. Also, make sure your name doesn't sound too similar to an already-existing business.
As for your corporate address, you cannot use a post office box. This must include an address for the physical office. If you would like to use a post office box for mailing purposes, that's fine. However, you will be required to indicate a physical address.