

Articles of Incorporation

Definition - What does Articles of Incorporation mean?

Articles of incorporation are the legal documents that company personnel file when they wish to officially turn their company into a corporation. These documents must be filed with the proper government authorities, and they must detail specific information about the company. For example, the name of the company must be included, the company's purpose, the location of the company, etc. The requirements for articles of incorporation are different in each state.

Justipedia explains Articles of Incorporation

Among listing the important details of the corporation, articles of incorporation also describe how many shares of stock will be issued, and to whom. The type of corporation that a company wishes to become will influence who can get stock. For example, if the company chooses to become a close corporation, shares of stock cannot be sold to the public, only to people involved or close to the business. Laying out stock ownership in the articles of incorporation prevents confusion over ownership later on down the road.

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