A Certificate of Incorporation (“COI”) is an official document filed with a U.S. state’s Secretary of State to create a U.S. corporation. It officially creates the corporation and states the corporate name, address, and other important information. The Certificate of Incorporation is also known as “articles of incorporation” or a corporate charter.
What Does a Certificate of Incorporation Do?
The Certificate of Incorporation serves two main purposes. First, it creates the corporation under state law so that it has legal recognition. The corporation can then exist and perform all the activities associated with being a legal entity. Secondly, the Certificate of Incorporation states certain facts about the corporation that the public needs to know, such as its purpose, capital structure, and who owns it.
The Benefits of Obtaining a Certificate of Incorporation
A Certificate of Incorporation is one of the most important documents a company will obtain, as it offers important legal and financial protection. By registering a corporation under state corporate law, the company can protect its owners from personal liability for corporate debts and obligations. Additionally, obtaining a Certificate of Incorporation can help to attract potential investors as it demonstrates that the business is serious and well-structured.
How to Obtain a Certificate of Incorporation
Obtaining a Certificate of Incorporation is fairly straightforward. You must file the appropriate paperwork with the state in which the business is formed. The paperwork includes the state-specific Articles of Incorporation form, which indicates the company’s name, purpose, and other important information. Once the form is completed and filed with the relevant state office, the Certificate of Incorporation will be officially recorded and the corporation is officially created.