Articles of Incorporation

Often, the following information needs to be included in Articles of Incorporation:

• The corporation’s name 
• The corporation’s business address
• The names, addresses and signatures of the incorporators
• The name and address of the registered agent in the state
• The number of authorized shares and their par value (if applicable)
• The number of authorized shares for each class and a description of their rights (if there are multiple classes of shares)
• Duration of the corporation  (if it was not established to exist perpetually)

Keep in mind that each state has its own requirements, which can slightly differ. Additionally, while each state requires certain mandatory provisions, businesses can also include optional provisions based on their use cases.

The goal of this document is to be legally recognized and operate officially within a state. By filing Articles of Incorporation, corporations can issue stocks, qualify for favorable tax treatment, and attract investments. That’s why business owners choose to incorporate because it allows them to issue stock, raising substantial capital. 

It’s a legal requirement and a standard business practice when you’re forming a corporation in most jurisdictions. Articles of Incorporation provide essential information about the entity and are maintained on file with the Secretary of State. Without properly filing these documents, your corporation can’t benefit from the protections and advantages of a corporate entity.

An operating agreement is used for limited liability companies (LLCs), and it is a similar document to Articles of Incorporation (which applies to corporations). Both documents outline ownership and business structures and have other key information listed, but they apply to different business types. For example, while LLCs cannot issue stock, these types of businesses provide similar liability protection and tax advantages, making both structures popular choices.

You can submit these documents to the Secretary of State’s office in the corporation’s home state, with the process managed by the incorporators and accompanied by a state filing fee, regardless of whether your business operates there or not. If your company is incorporated in one state but conducts business in another, you must register in the additional state, also covering that state’s filing fees and taxes. That said, the initial Articles of Incorporation can be amended if needed. 

Know Your Business (KYB) is a process used to verify another company, which is mandatory for regulated entities, such as banks, fintech platforms, and other high-risk entities that handle sensitive data and large transaction volumes. KYB measures differ, but they can also include address verification (to check if the company’s address is legit) and other factors like verifying Articles of Incorporation (depending on the industry and the entity’s jurisdiction). 

For example, iDenfy has a custom Business Verification solution that evaluates another company’s risk, helping you to determine if it’s okay for you to start a business relationship with it and if the business complies with Anti-Money Laundering (AML) regulations. Key processes that can be automated with this solution include beneficial ownership verification, PEPs and sanctions screening, watchlist statuses, adverse media reports, and more.