There are a lot of different legal documents that businesses need in order to operate. The type of business you have will determine which documents you need, but there are some that are essential for all businesses. If you’re just getting started, it’s important to make sure you have the right legal documents in place so that your business is protected.
The first document you’ll need is a business license. This will vary depending on your business type and location, but all businesses need some form of license in order to operate legally. You can usually apply for your business license through your local Chamber of Commerce or government website.
Articles of incorporation vs articles of organization
If you’re starting a corporation or LLC, you’ll need to file articles of incorporation or organization with your state. These documents are what officially form your business and give it legal status. Without these documents, your business will not be recognized by the government and will not be able to operate.
You can usually find templates for these documents online, or you can have an attorney prepare them for you. Once you have your articles of incorporation or organization, you’ll need to file them with your state and pay the filing fee.
The key differences between the two types of articles are
-The purpose of the business: A corporation is typically formed to make a profit, while an LLC can be formed for any legal purpose.
-How the business is taxed: Corporations are taxed as separate entities, while LLCs are taxed as pass-through entities. This means that the owners of an LLC are taxed on their personal income, rather than the LLC itself being taxed.
-The level of liability protection: Corporations offer limited liability protection to their owners, while LLCs offer full liability protection. This means that the owners of a corporation can be held liable for the debts and liabilities of the business, while the owners of an LLC are not.
How to decide which type of article is right for your business
The type of business you have and your goals for the business will determine which type of article is right for you. If you’re starting a business that will make a profit, then you’ll need to file articles of incorporation. If you’re starting a business that doesn’t have to make a profit, then you can file articles of organization. And if you’re starting a business that will be taxed as a pass-through entity, then you’ll need to file articles of organization.
Once you have your business license and articles of incorporation or organization, you’ll be ready to start operating your business. Make sure you keep these documents in a safe place so that you can reference them if needed. And if you have any questions, be sure to consult with an attorney to make sure you’re in compliance with all the legal requirements for your business.
This article is for informational purposes only and does not constitute legal advice. If you have any questions about your specific situation, please consult with an attorney.
The benefits of filing articles of incorporation or organization
-Your business will be officially recognized by the government.
-You’ll be able to operate your business legally.
-You’ll have limited liability protection for your business.
-Your business will be taxed as a separate entity.
The downside of not filing articles of incorporation or organization
-Your business will not be officially recognized by the government.
-You’ll be operating your business illegally.
-You could be held liable for the debts and liabilities of your business.
-Your business will not be taxed as a separate entity.