In 2007, Safe Shield released a complete compliance solution program, designed to ensure that businesses stay compliant with corporate regulations. We believe in the power of business to enable prosperity for owners and consumers, so our #1 goal is to assist businesses in reaching their goals while operating within the boundaries of the law.
One critical way for businesses to maintain compliance, and avoid prosecution or fees from the government, is to seek legal liability protection through entity formation. This type of protection essentially separates the business from the business owner(s), ensuring all liabilities and obligations are the responsibility of the business entity and not the business owner(s). One of the most popular, and profitable, entities are corporations. In order to begin a corporation, articles of incorporation must be filed.
Articles of incorporation (also referred to as Corporate Charter or Certificate of Incorporation) are the main rules that govern how corporations are managed in the United States and Canada. These documents are generally filed with the state or other designated organization.
By law, articles of incorporation must include the following: the company’s name, street address, agent for service of process, what type of stock is to be issued, and how much stock may be issued. Most states also require the corporation to state their purpose, however the corporation may state their purpose in broad terms in order to maintain flexibility in operations down the road. Other provisions that may be required within articles of incorporation could include: the ability of stockholders to hold special meetings, the actions that can be taken by stockholders without a meeting, and limitations of the director’s liability. However, most states do not require that these provisions be designated in the articles of incorporation, but rather in the corporation’s bylaws or other organizational documents such as organizational meeting or founder’s agreement.
Each state has its own specific requirements that must be included in your articles of incorporation. The corporation must also pay a fee to incorporate or pay a corporate franchise tax. Compliance starts with proper entity formation. Trust Safe Shield to file your articles of incorporation, and to implement the specific requirements for your state.
Articles of incorporation are filed with the secretary of state in whatever state your corporation will be operating in. Before deciding on a location for your corporation, research states of interests to see if there are any corporate incentives or taxes. Some states offer very favorable tax and regulatory environments for corporations, therefore attracting large numbers of corporations each year.
We encourage you to learn more about what we provide within our Business Formation System, or schedule a phone call with one of our experts.