What to Know About Articles of Incorporation

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Starting up a business can be very exciting. Whether you're starting up one of your own, or you're helping out someone else, you want to make sure it's done the right way. A lot of businesses become incorporated to protect themselves, and to do that you need articles of incorporation. Here's what you should consider when creating those articles, so you can protect yourself and your future.

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You won't have worries about your articles of incorporation template, when you choose one you can trust and then fill in the details of your business. That will cover all the important, necessary aspects of the contract. Here, we'll be covering:

  • Important Clauses
  • Best Practices
  • Tips for Security
  • Advice on Articles of Incorporation
  • Key Considerations
  • Related Resources

Important Clauses in Articles of Incorporation

When creating articles of incorporation, you need to make sure you're using all the clauses that need to be in there. If you leave something out or don't word things correctly, you may not have the level of protection you need. When you choose an articles of incorporation template you can get everything you need in one spot, so you have the security and peace of mind you need for your new business.

  1. By-Laws — The by-laws are the basic tenets the corporation will be following. It's like a constitution for your business.
  2. Shareholder and Director Information — The shareholders and directors of the corporation have to be named, and their duties/obligations stated.
  3. Share Buyback — In certain situations, the corporation may want to buy back shares. This allows it to do that.
  4. Term Sheet — The terms of investment in securities or shares, spelling out the rights when investing in those areas.

By ensuring that there's accuracy in the clauses of your articles of incorporation, you'll be able to move forward confidently with the development of your business.

Articles of Incorporation Best Practices

By using an articles of incorporation template, you can have all the standard, boilerplate language you need, and cover your legal bases successfully. That helps reduce any chances that something will slip through the cracks, or that you won't word something correctly to set up your company the way you need. Incorporating is a form of legal protection, so you want to ensure that it's done and filed the right way. In short:

  • Ensure that everything is complete before you send it out for a signature or sign it yourself.
  • Don't change the standard terms and language that are a part of the template.
  • Fill out all the information and detail about your business correctly and completely.

The articles of incorporation template gives you a good idea of what you can expect, so you're not spending a lot of time looking through it for all the little incidentals. You can fill in the blanks, and know that you have the right phrasing and information to incorporate your company.

Tips for Secure Articles of Incorporation

Among the best ways to make sure your articles of incorporation are secure, and processed correctly, is to send them for signature electronically. Whether you've created them for your own business, or for someone else to help them out, signing electronically is the way to go. When it's time to sign your articles of incorporation or any other type of contract, use Nitro Sign to get your contracts or important documents signed. It's a quick and secure way to make sure everything is signed and delivered properly.

Advice on Creating Articles of Incorporation

When you create and use articles of incorporation, you want to make sure they're addressing the business you're setting up, or the one you're helping someone else develop. You need to create the articles in a way that speaks to the type of business, the officers and others who have control of it, and any details that would stand out or be unique. That reduces the chances for problems, so the incorporation can go forward.

Key Considerations for Articles of Incorporation

Some of the biggest considerations with articles of incorporation include:

  • The right wording, to make sure you can incorporate successfully.
  • Being clear on who the officers are.
  • Addressing the type, size, and scope of the business.
  • Following the legal guidelines for the business' state of incorporation.
  • Understanding what type of corporation is being created.

With articles of incorporation, you can add to your protection and security, so you have the opportunity to grow your business in a way that's safe and will help you be as successful as possible for the future.

Related Sources for Additional Information

Ready to learn more about articles of incorporation? Consider these resources.

A Definition of Articles of Incorporation
What are Articles of Incorporation?

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