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They are legal documents filed with a state to officially create a corporation.
Is filing articles of incorporation necessary to start a business?
Yes, for corporations. It's a legal requirement to establish your business.
How much does it cost to file articles of incorporation?
Costs vary by state, ranging from $50 to $300 or more.
Where should I file my articles of incorporation?
Typically, with the Secretary of State in the state where you plan to do business.
What Are Articles of Incorporation? What's Included
Articles of incorporation are legal documents that establish a corporation, outlining key details like company name, structure, and shares, essential to the incorporation process and legal recognition.
Mridula Sharma16 May, 2025
Starting a new business is both exciting and overwhelming. You’ve got your vision, your mission, and maybe even your dream team. But before you officially kick things off, there’s a crucial legal step you can’t skip, filing your articles of incorporation.
This document might sound technical and dry, but it’s the official birth certificate of your corporation. It gives your business a legal identity, unlocks financial opportunities, and offers protection you won’t get as a sole proprietor or partnership. So, if you’ve ever asked, “What are articles of incorporation?”, here is exactly what you need.
What Are Articles of Incorporation?
At its core, articles of incorporation are the legal documents filed with a state government to officially create a corporation. Think of it like a formal introduction of your business to the world, “Hey, I’m here, and I’m legit!”
These documents are filed with the Secretary of State in the U.S., and they typically include:
The name of your corporation
The physical address
The registered agent (the official contact)
Details about your board of directors
The number and type of shares you’ll issue
And other state-specific information
Once accepted, your business transforms into a legal entity separate from you personally. This separation is what gives you limited liability protection and other key benefits.
Filing your articles of incorporation isn’t just a formality, it’s a powerful milestone. It tells the world, "I mean business."
Incorporation Process
The incorporation process is more than just paperwork; it’s the foundation of your business structure. Filing your articles of incorporation is the most critical part of that process.
The following is how it typically works:
Choose a State Some entrepreneurs file in their home state, while others choose states like Delaware or Nevada for their business-friendly laws.
Pick a Unique Business Name Your corporation’s name must be unique and compliant with state naming rules.
Appoint a Registered Agent This person (or service) receives official documents on behalf of your company.
File the Articles Submit the articles of incorporation to the state’s Secretary of State. You may need to pay a fee, which varies by state.
Receive a Certificate of Incorporation Once approved, you’ll receive a certificate of incorporation, the legal proof that your corporation exists.
It’s a one-time filing, but it sets your business up for long-term success. It also unlocks other doors like opening a business bank account, issuing stock, and more.
The articles of incorporation outline essential business details that state authorities require for your business to be recognized. The following are the most common components:
1. Corporate Name
Your business name must be distinguishable from others already on file in the state.
2. Registered Agent
This is your business’s official point of contact. They’ll receive lawsuits, subpoenas, and official mail.
3. Business Address
This can be your physical location or the address of your registered agent.
4. Purpose Clause
Some states allow you to be general ("to engage in any lawful activity"). Others require a specific business objective.
5. Type of Corporation
Is it a nonprofit? A C-Corp? An S-Corp? You’ll need to specify.
6. Number and Type of Shares
You must state how many shares your corporation is authorized to issue and what type they are.
7. Initial Directors
Many states require the names and addresses of your first board of directors.
8. Incorporator Info
This is the person completing the filing, could be a founder, attorney, or incorporation service.
Where and How to File Articles of Incorporation?
The location where you file your articles of incorporation can impact your taxes, liability, and even funding options. Let’s break it down.
Filing in Your Home State
Most small businesses file in their home state. It’s straightforward, cost-effective, and legally sound.
Filing in Business-Friendly States
States like Delaware and Nevada offer business-friendly laws and lower taxes, making them attractive for startups.
But remember: If you operate in a state other than where you incorporated, you may need to register as a “foreign corporation” and pay additional fees.
The value of articles of incorporation goes far beyond just being a form.
1. Legal Recognition
Without them, your corporation doesn’t legally exist. With them, you’re a recognized entity that can sign contracts, hire staff, and own property.
2. Limited Liability
They separate you from your business. This shields your personal assets from lawsuits or debts your company might face.
3. Tax Advantages
Corporations may qualify for different (and often better) tax treatment compared to sole proprietors.
4. Capital Raising Opportunities
You can’t issue stock unless you’ve incorporated. This is crucial for attracting investors.
5. Business Credibility
Having formal articles of incorporation makes your business look more professional to banks, partners, and customers.
Articles of Incorporation vs. Other Documents
Understanding what articles of incorporation are also means knowing what they are not.
Articles of Incorporation vs. Bylaws
Articles = external legal filing Bylaws = internal rules for operating your corporation
Articles vs. Operating Agreement
Articles are for corporations. Operating agreements are for LLCs and govern member responsibilities and dispute resolution.
Articles vs. Business License
Articles establish the business legally. Licenses give permission to operate in specific industries or regions.
Articles vs. Business Plan
A business plan is a strategy document. Articles are compliance documents filed with the state.
Every document serves a unique purpose, but none unlock your legal status like articles of incorporation do.
Take Your Career Further with the PW Certification Program
Understanding the articles of incorporation is just the beginning of your professional journey in the world of business, finance, and law. If you're serious about building a future in corporate finance, taxation, or accounting, you need more than just information. You need the right skills, the right certification, and the right mentor to guide you.
That’s where the PW Certificate Program in Finance, Tax, and Accounting comes in. Designed by industry experts, this program equips you with real-world knowledge, hands-on experience, and certifications that employers trust. Whether you're a student, entrepreneur, or aspiring finance professional, this program can transform your passion into a profession.
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