Incorporation filing is when you submit documents to your government authority to make the creation of your corporation formal. It involves legal documents known as Articles of Incorporation.
Read the rest of this article to discover everything you need to know about incorporation filing, such as how to submit your documents, how much it costs, and how hiring a lawyer can help you with the process.
What are Articles of Incorporation?
Articles of Incorporation are legal documents filed with the secretary of state, without which you can’t set up your corporation. They contain essential information, such as business ownership and structure, as well as the following:
- The legal name of your corporation. In some locations, you’ll have to include specific suffixes (such as “Inc” or “Ltd”).
- The address for receiving business-related communication.
- Your registered agent. This is the person who will receive important business correspondence on your behalf.
- Business purpose. Some jurisdictions allow general statements while others will require more detail.
- Corporation type. For example, if it’s an S corp or C corp.
- Board of directors (members and their addresses).
- Stock details, such as stock prices and how many stocks will be issued.
- Duration, or how many years that the corporation is expected to run.
Why Do You Need Articles of Incorporation?
Articles of Incorporation are a key step involved in setting up your corporation. These documents ensure that the state sees the corporation as a legal entity. Here are some benefits of filing Articles of Incorporation:
- They create a separate legal business entity so that you can sign contracts, own property, and conduct other business activities.
- They make a business more credible, especially in the eyes of investors and financial institutions.
- They let the business issue stock.
- They define business ownership structures which are important when completing a range of tasks, such as equity distribution.
How Should You File Articles of Incorporation?
Your Articles of Incorporation should be filed when you form your corporation, and they should be submitted to your local Secretary of State. If you don’t file them correctly, this could result in problems with the IRS at a later stage.
When filing these legal documents, you’ll want to download the official filing form from your state’s Secretary of State website. Ensure you fill in all the information so that there are no errors. Any mistake on the form can result in delays in processing the forms. Depending on your state’s rules, how you format the form might vary.
Once you’ve prepared your form, you will submit it. You can do this online, by mailing it, or by submitting it in person, depending on your jurisdiction. You’ll also have to pay a filing fee.
How Much Does it Cost to File Articles of Incorporation?
Although the cost of filing your Articles of Incorporation varies by state, you can expect to pay a filing fee of between $50 and a few hundred dollars, but it could be more depending on your location. Many states offer various payment methods, such as credit/debit card payments and online payments.
There can be other costs involved in the process, such as expedited service that will help your documents get processed faster, but this could cost an extra few hundred dollars. Another fee you might have to pay is a registered agent fee. A registered agent will file the documents on your behalf, for a fee of approximately $200.
How Long Does it Take to File Articles of Incorporation?
Once you’ve submitted Articles of Incorporation with your State of Secretary, you will have to wait for between a few days to a few weeks for the documents to be processed.
You’ll know when the process has been successful because you’ll receive a certified or stamped copy of your Articles of Incorporation.
Do You Need to Hire a Lawyer to File Articles of Incorporation?
It’s not always necessary to hire a lawyer for the filling of your Articles of Incorporation. Many states make the process easy by providing you with a form or template you can download.
However, you have to ensure you have all the information you require and that you complete the forms accurately.
Hiring the services of a lawyer can benefit you if you’re unsure of the filing process or your corporation is complex.
Here are some ways in which a lawyer will help you:
- They’ll consider your state laws, as the filing process and its related fees vary in different locations, to ensure you stay legally compliant.
- They’ll help you with important steps involved in setting up your business after filing your corporation, such as obtaining an employer identification number (EIN).
- They’ll ensure you avoid making mistakes when filling, which could delay the process.
- They’ll guide you on any complex aspects of your business so everything is done correctly.
- They’ll help you ensure your business name is legally available to use so you avoid problems later.
- They’ll help you customize your Articles of Incorporation. This can include provisions about how the business is managed and its powers.
Are Articles of Incorporation the Same as Articles of Organization?
Although these documents are similar, Articles of Incorporation are meant for people starting a corporation while Articles of Organization are for a LLC (Limited Liability Company).
When you wish to file either business document, it’s essential to check your state’s rules. In some locations, these document names are used interchangeably (even though they contain different information), which is why they can be confusing.
Do you need to hire a lawyer for incorporation filing?
You should hire a lawyer from ContractsCounsel, an online legal marketplace that connects clients with vetted, experienced lawyers. Their lawyers have expertise in dealing with business formation and will file your Articles of Incorporation quickly and efficiently, while considering your business needs.
