Learn more about what a Certificate of Incorporation is in business.
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If you’re an entrepreneur considering starting a corporation, you may have come across the term Certificate of Incorporation. However, you may not know exactly what this is or whether and when it might apply to your small business.
Fortunately, we have the answers you need.
If you’re not sure what the definition of Certificate of Incorporation is, don’t worry — we’re here to help! Use our guide below to learn more.
According to the Small Business Administration (SBA), a Certificate of Incorporation is a comprehensive legal document that details the basic information about your corporate entity. A form of this document is required by each state to formally register your business to conduct business legally.
If you don’t file your Certificate of Incorporation with your state, you won’t have an official legal entity. Thus, properly filing your Certificate of Incorporation is essential for any new business owner intending to start a corporation.
Importantly, a Certificate of Incorporation isn’t called a Certificate of Incorporation in every state. For example, depending on what state you’re located in, Certificates of Incorporation might instead be referred to as:
No matter what this document is referred to in your particular state, know that it serves the same overall purpose for your corporation.
The exact information you’ll need to include in your Certificate of Incorporation or equivalent formation document will depend on your state of incorporation. However, most states require similar information.
For example, your Certificate of Incorporation must typically include information such as:
As always, be sure to verify that all information is accurate before filing your Certificate of Incorporation with your state.
Technically, not all businesses will need to file a Certificate of Incorporation for their small business. This is because you need a Certificate of Incorporation only to set up corporations.
Conversely, if you’re registering a limited liability company, for example, you’ll instead need to file Articles of Organization — also known in some states as a Certificate of Organization — as your required state formation document.
Thus, if you’re planning to form a corporation, specifically, you’ll need to file a Certificate of Incorporation or equivalent document. However, if you select a different type of legal entity structure for your business, your formation documents will be different.
A Certificate of Incorporation is an important legal document that will serve as the official registration document for your corporation. This document does go by a number of different names. However, regardless of the precise name used in your state, the purpose will be the same.
Your corporation won’t be legally formed unless and until you timely and properly file your Certificate of Incorporation with the state. Thus, be sure to speak with a legal professional in your state before submitting your documents to better ensure that you do everything correctly.
Owning and operating a small business requires a great deal of hard work and dedication. But getting off on the right foot can make all the difference.
When you have questions about whether and when to file a Certificate of Incorporation for your business, we’ll be standing by and ready to help. With our many products and services, we have the tools and resources you need to help your business succeed.
Disclaimer – The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.