Modern business needs have seen many new forms of entities emerge with different legal statuses, characteristics, advantages and disadvantages.
A Limited Liability Company (also known as an LLC) is the one which embodies the characteristics of a partnership as well as that of a company. An LLC operating agreement is a document which sets the framework for the internal management of the Limited Liability Company to which it pertains.
This LLC operating agreement is an integral part of the process of formation of a Limited Liability Company as it sets out the way the business will be run, how the Limited Liability Company will be operated, how the partners will contribute to the equity and share the profits, as well as the liabilities attached to the taking of loans and employee dues. Thus, what the operating agreement is to an LLC company, the article of incorporation for corporation is to other types of companies.
Article of incorporation is a legal document which sets out the guidelines for the working of a company. Its scope is limited to the conduct of internal business of the company.
* It defines the relationship between shareholders, directors and those charged with governance of the company with each other.
* It spells out how and which meetings will be called, how meetings will be proceeded, who will chair the meetings, when meetings should be necessarily called, what are the powers of certain type of meetings, what procedures be adopted for passing a resolution.
* How directors will be elected and how the chairman of board of directors and the chief executive officer will be elected.
* Establishes the structure and purpose of the corporation.
Articles of incorporation for the formation of a company is one of the basic documents for incorporating your corporation or company. Sample of articles of incorporation are easy to find on the internet but vary by jurisdiction. They also set the objectives and scope of the business including what activities the business will undertake and what path will be adopted by the business in order to achieve its goal.
Article of incorporation for companies is very important as it outlays the procedures to carry on the smooth running of the business; that is why article of incorporation for companies are registered with the relevant regulatory authorities and any change in it has to be approved by a majority of shareholders before being recorded and reported to the registrar of companies within the stipulated time.
The articles of incorporation are different from the Certificate of Incorporation. The Certificate of Incorporation is the license that allows you to operate your business, and the articles of incorporation generally spell out how you are going to do it.
Sample of articles of incorporation are not standard and vary by jurisdiction. Even Microsoft Office has some templates of the Article of incorporation for companies which can be really helpful to you if you want to see what a typical article of incorporation looks like. You can also look at the article incorporation llc sample on various websites to get an idea of what should be included.
About the Author:
Ramapati Singhania specializes in creating and managing web businesses. His latest website
http://www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog,
http://www.ramapatisinghania.com
No. of Times this article has been viewed :
590
Date Published :
May 27 2008