Start Strong: Get Your Articles of Incorporation Done Right
Ever wondered why some businesses fail right after starting? The secret often lies in their articles of incorporation. Getting this important document wrong can mean big problems for your company. A Moorestown NJ articles of incorporation attorney can help you avoid these issues.
Articles of incorporation set up your business legally, affecting how it runs and is taxed. Without professional help, mistakes can lead to costly legal problems down the road. Knowing the risks and taking the right steps at the beginning can save a lot of trouble later.
Find out more about why articles of incorporation matter and how you can get them right from the start.
Quick Summary
Below is an overview of the key points of this article.
- Articles of Incorporation are papers needed to start a business and get it recognized by the government. These documents contain key details about the company that the government requires.
- Articles of Organization are for creating LLCs while Articles of Incorporation are for forming corporations. Both offer protections against personal liability but differ in ownership transfer and investor appeal.
- After filing, submit an initial report, publish an ad in a local newspaper, and file annual reports. Also, create corporate bylaws, hold board and shareholder meetings, and handle administrative tasks like obtaining licenses and opening a business bank account.
What Are Articles of Incorporation?
When you’re starting a business, you need to fill out some paperwork called “articles of incorporation.” These papers are necessary for getting your business officially recognized by the government. They contain important details about your new company that the government wants to know, no matter where your business is based.
Are Articles of Incorporation the Same With Articles of Organization?
Articles of incorporation and articles of organization are both needed to set up a business legally, but they’re for different types of companies. Articles of incorporation are for forming corporations, while articles of organization are for creating limited liability companies (LLCs), which are in a different category.
LLCs and corporations offer similar protections against personal liability for business debts and legal issues. However, LLCs don’t make it simple to transfer ownership as corporations do, which might not work well for businesses expecting outside investors.
How Do I Find New Jersey Articles of Incorporation and Why Does it Matter?
You can get New Jersey articles of incorporation from the New Jersey Division of Revenue and Enterprises Services website. This site has details about all businesses registered in New Jersey. You can request important documents like certificates of standing and status reports there.
Handling legal paperwork might feel overwhelming, but having the assistance of a Moorestown NJ articles of incorporation attorney will make you glad you filed your articles of incorporation for several reasons.
- Legal Standing. As a corporation, you can make contracts, borrow money, hire workers, and earn money.
- Attracting Lenders. Being a recognized legal entity makes your business more attractive to lenders.
- Raising Money. Selling stocks to raise funds becomes possible.
- Protecting Assets. Keeping your personal assets separate from business debts shields them from risk.
- Tax Advantages. Being an established legal entity helps avoid unfavorable tax treatment linked with being a sole proprietor.
What Essential Information Are Included in Articles of Incorporation?
People often mix up articles of incorporation with a company’s bylaws. Bylaws give a detailed guide to how your company runs, but they don’t have to be public. Articles of incorporation are public records and only need to include the essential information.
Corporation Name
Providing the name of your corporation might seem simple.
- Your corporate name must include a word that shows it is a corporation.
- Your name must be different from other business names already registered with the state.
- Avoid trademark infringement.
Main Location of Your Business
The principal place of business for your corporation is just the main location where your business operates. For most small businesses, this will be their only location. You might need to give a specific street address for it.
Registered Agent
A “registered agent” is someone or a business you pick to get important papers for your corporation. These papers could be notices from the state or documents about lawsuits.
The registered agent needs to be in the same state where your corporation is set up, and you have to give a real street address for them. You might choose one of your corporation’s officers to be the registered agent, using the business location address.
Statement of Purpose
Most states don’t require a detailed description of your corporation’s activities. A broad statement like “The corporation will engage in any legal activities allowed in this state” is usually sufficient and is often included on incorporation forms.
If your state asks for more detail, keep it general. For example, if your business focuses on website design, you could say “To offer website design services and engage in any other legal activities allowed in this state.”
Corporation’s Authorized Stock
Usually, you’ll need to say how many shares of stock your corporation can give out. Some states also want to know if your corporation can give out different types of stock.
Remember, the number of shares you’re allowed to give out isn’t the same as the number you give out at first. You can decide to allow more shares than you plan to give out right away.
Incorporator’s (Officers’ or Directors’) Names and Addresses
An incorporator is responsible for starting a business and may not be a corporate officer or director. Most small businesses have one incorporator, who usually selects the initial directors, and in turn, the directors choose the officers.
Authorized Signatures
At least one person starting the business has to sign the articles. If more than one person is starting it, usually, they all have to sign and give their addresses.
How Can I Submit Articles of Incorporation?
You can submit the document online, by mail, or by fax. It costs $125 (plus a payment processing fee) to file it as a Public Records Filing. Once it’s filed with the state, this document officially forms your New Jersey corporation.
Steps to Do After Filing Articles of Incorporation
After you’ve filed your articles of incorporation, there’s more work to do to run your business legally. This includes:
- Initial Report. Submit an initial report about a month or two after you incorporate. This report has the latest details about your business, like who the directors and officers are, your location, and your registered agent. In some ways, it might feel like filling out the articles of incorporation again.
- Publishing Requirement. In many states, you need to put an ad in a local newspaper with your business name, address, how many shares you have, and other details from your articles.
- Annual Report. Annual reports usually have a lot of financial information for people who might want to invest in your company or for the public to see. Every state has its own rules, but you usually have to send them in by March or April after your company’s first year.
- Corporate Bylaws. Corporate bylaws are like a rulebook for how to run the company. They’re more detailed than the articles of incorporation. Bylaws explain what shareholders, directors, and officers can do and what they’re responsible for.
- Board of Directors Meeting. After you’ve incorporated, have your first board of directors meeting and write down what’s discussed and any decisions the board makes.
- Shareholder Meeting. You’ll also need to have your first shareholder meeting and write down what happens. In this meeting, you’ll give out shares of stock and keep a record of who gets them.
- Handle Administrative Matters. When setting up your company, you’ll also need to get any local business licenses, apply for an employer identification number (if you’re a corporation), and open a business bank account. It’s also important to find out when your state requires you to file corporate taxes and franchise taxes.
Why Do I Need an Articles of Incorporation Attorney in New Jersey?
Starting a business in New Jersey? You might wonder why you need a Moorestown NJ articles of incorporation attorney. Here’s why:
- Avoid Costly Mistakes. Filing articles of incorporation involves many legal details. Errors can lead to fines or even having your application rejected. A business formation lawyer in New Jersey ensures everything is done right the first time.
- Save Time. The process of setting up a business can be long and complicated. A Moorestown NJ articles of incorporation attorney speeds up the process by handling the paperwork and legal steps, letting you focus on your business.
- Legal Protection. A lawyer helps protect your personal assets by ensuring your business is properly incorporated. This limits your liability if the business faces legal issues.
- Tailored Advice. Every business is unique. A New Jersey business attorney provides advice specific to your business needs, helping you choose the right structure and ensuring all necessary documents are in order.
- Future Issues. A Moorestown NJ articles of incorporation attorney helps you think ahead, preparing for potential future problems. This proactive approach saves you from unexpected legal troubles later on.
Solid Legal Ground for Your New Business in New Jersey
Choosing the right legal team can make all the difference in successfully establishing your business. Posternock Apell, P.C. stands out with its deep understanding of New Jersey’s incorporation laws. Our business lawyers bring years of experience and a proven track record of helping businesses get started on solid legal ground.
With our firm, you get more than just legal advice—you get a strategic partner dedicated to your success. At Posternock Apell, P.C., we offer personalized service tailored to your specific needs. We ensure your articles of incorporation are correctly prepared and filed, safeguarding your business from potential legal issues.
Trust our Moorestown NJ articles of incorporation attorney to guide you through every step, making the process smooth and stress-free. Contact Posternock Apell, P.C. today for a free consultation to secure your business’s future with trusted legal support. We can also represent you in Business Litigation and Real Estate Litigation.