Articles Of Incorporation Flashcards, test questions and answers
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What is Articles Of Incorporation?
Articles of Incorporation are a set of formal documents that establish the existence of a corporation. They provide important information about the company such as its name, purpose, and location, as well as how it is structured and owned. The articles also spell out the rights and responsibilities of shareholders and directors. A company must file Articles of Incorporation with their state in order to become an official legal entity.The Articles of Incorporation outline the role that each shareholder plays and sets forth the rules for running meetings, electing officers, issuing shares (if applicable), amending bylaws, maintaining records, filing annual reports with state agencies, designating registered agents for service of process notices or lawsuits; dissolving corporations; making distributions to shareholders upon dissolution; establishing procedures for taking corporate action without holding meetings; applying for tax exempt status from federal agencies if eligible; allocating profits among members or shareholders according to agreements they’ve established among themselves or through judicial decisions made on behalf of them in cases where disputes arise over who is entitled to what portion(s)of earnings. Additionally, these documents may include provisions related to other matters such as personal liability protection offered by incorporating one’s business activities into distinct legal entities like LLCs or corporations -this way individuals can shield their personal assets from any debts incurred during normal course operations while still being able stand behind obligations incurred on behalf if their incorporated businesses should they ever be called upon too do so (e.g., claims made against corporate entities). In short, Articles Of Incorporation serve as a foundational document that provides key information about a new corporation including basic operational details needed for day-to-day management and decision making processes -as well providing legal protection from liabilities arising out conducting business in general meaning that corporate founders can have peace mind knowing they’re shielded under law when acting prudently within scope prescribed limits outlined via these documents.