Articles of Incorporation

Do you have a home business in which you wish to take to the next level? Or perhaps you have a business outside the home in which you have deemed it necessary to incorporate.

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Before you decide whether to incorporate your business, here is some information which may be helpful.

What are Articles of Incorporation?

They are the foundation upon which you govern the management of your business, and are filed with your state agency. Whether you have a small or large new business, most states require articles of incorporation. What is required to incorporate? Your new corporation's name and address; the purpose of the corporation; name and address of your corporation's registered agent, who will be authorized to accept delivery of certain legal documents on behalf of your corporation; and stock information, if applicable. The Articles of Incorporation identify the incorporators of the corporation; for example, you and designated business partners who own the company.

If you decide to incorporate your business, you can prepare a simple Articles of Incorporation form which you can obtain online from the Secretary of State’s office in your area. These forms are pre-printed, and will most likely be accepted for filing in your state as long as they contain the minimum information mentioned above.

After your Articles of Incorporation form is filled out and signed, it is ready for filing with your state's Secretary of State’s office. The filing of the Articles of Incorporation requires payment of a filing fee which can range anywhere from $35 to $300, depending upon the state of incorporation. In some states, the filing fee varies if the new corporation is a non-profit rather than a for profit corporation. In California, for example, the fee for filing Articles of Incorporation for a corporation for profit is $100, while the filing fee for a non-profit corporation is $30.

Once you file the Articles of Incorporation you will need to draft bylaws. These determine how your corporation will be run; delineate the members of your board and how the board will function. Keep in mind when drafting bylaws, it must clearly be stated the mission of your company; when board members will meet to discuss business matters; and a record of every meeting must be recorded. You then need to apply to the IRS for federal tax-exempt status, followed by a mail permit which will allow you to receive discount rates on your bulk mail. Obtaining an EIN or Federal Tax ID number is also essential for hiring employees and for income tax purposes. These steps are necessary when filing Articles of Incorporation for a non profit business.

Deciding to incorporate your business by filing Articles of Incorporation can be determined at any time. Research your state’s regulations and what you will need if and when you proceed in this direction.