What is corporation charter




















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Measure content performance. Develop and improve products. List of Partners vendors. A corporate charter, also known as a "charter" or " articles of incorporation ," is a written document filed with the Secretary of State or registrar in Canada by the founders of a corporation.

It details the major components of a company, such as its objectives, structure, and planned operations. If approved by the state, the company becomes a legal corporation. The creation of corporate charters is the start to building a new corporation. Corporate charters signal the birth of a new corporation.

Once filed and approved, a corporation becomes legitimate and legal. Stock corporations are required to provide a specific number of stock shares as well as stock prices for the initial public offering, or IPO. When applicable, a charter transitions a business from a sole proprietorship or partnership to a corporation. There has to be a corporate designation in a company name when filing a corporate charter, such as Inc. Individuals who wish to start a corporation will file the charter with the Secretary of State office.

In most cases, the state charges a fee to file these documents, but nonprofits often pay a reduced fee. You can always contact the Secretary of State office in your state to get more information about requirements, rules, and fees for filing a corporate charter.

You can find a basic corporate charter template on various state government websites, but many people choose to consult business attorneys when they file because some states have more favorable business environments for corporations. The individual writing the corporate charter should be familiar with the company's goals and startup activities. The writer should also be familiar with the laws that govern corporations in that jurisdiction.

Although some variations in the laws associated with creating corporations exist from one state to another, the general requirements for a corporation charter basically are the same in each U.

The function of a corporation charter is to establish the basic elements for an incorporated business enterprise. For example, a corporation charter sets forth the activities the corporation intends to engage in once established. A common provision in this regard in a corporation charter is to engage in any lawful activity permitted of a corporation pursuant to the laws of the state, according to "Business Organizations and Corporate Law" by Neal R.

Basic features of a corporation charter include the name of the business, the names of the individuals designated to serve on the initial board of directors, the address of the principal place of business and the name of the registered agent.

The registered agent is the individual designated to accept the service of a summons and petition on behalf of a corporation if it is sued. A corporation charter must be prepared and file before that business lawfully transacts business. Those ancillary names are sometimes known as DBAs or doing-business-as names. Including those in the charter often helps to prevent the need to make amendments later or create additional legal documents to protect the rights of the business to those names.

Other basic details must also be included in the corporate charter. The names of the corporation founders as well as a physical location for the company are essential. In addition, the main function of the business operation must also be identified. The function may be noted in terms of a broad connection with a particular industry type or be very specific, depending on the laws and regulations that apply.



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