If You Want To Be Rich, We Can Help You! | What are Articles of Incorporation?

Forming a separate entity is wise for any entrepreneur, regardless of how big or small you are.  Saving on taxes and protecting your assets are a few of the advantages of going in this direction which will inevitably put more money in your pocket and add to your net worth.

If you are just starting to learn about incorporations and the incorporation process, the one thing that you need to become familiar with are articles of incorporation. It is important to learn as much as you can about the articles because this is what is submitted to the state departments when you file your entity.

The first thing that you need to know about the articles of incorporation is what information you have to include in it. This information is going to vary by state; some states will require a lot of information, while others leave it more up to you. One piece of information that is vital to the articles of incorporation is the name and addresses of all of the incorporators of the entity, if it is only one person you only need to include their information. The incorporators must also sign the articles of incorporation before they can be filed.

Other information that is usually required are the names and addresses of the directors. Some states require directors to be of a certain age and live within the state, so be sure to include that information if asked for. The officers are usually optional. Information on the issuing of stock is usually included in the articles of incorporation; most states require that this. With stocks, you will want to list the class of stocks that your corporation is authorized to issue, and you will want to include the number of shares your corporation is authorized to issue for each class of stock that is listed. You won’t have to disclose who owns each percentage of stock, just the total number of shares issued.

Once you have filled in all of the required information and the incorporators have signed the articles of incorporation the final step would be to file it with the appropriate state’s office, usually the Secretary of State’s office.

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