A legal document known as the Articles of Incorporation establishes a corporation as a distinct legal entity from its owners. It contains details on the company’s name, objectives, location, and the total number of shares it is permitted to issue. The Secretary of State in the state where the business will be formed must receive a copy of this document.
A Certificate of Existence, on the other hand, is a record that confirms a business is in good standing with the state government and is also referred to as a Certificate of Good Standing. It verifies that the business has complied with all legal requirements, such as submitting yearly reports and paying taxes. This document is often necessary for a business to enter into contracts, apply for a loan, or open a bank account. What Does a Company Mean When It Says It Is “In Existence”?
When a company is described as “in existence,” it signifies that it has been incorporated lawfully and has been given permission to conduct business in the state where it was created. This status shows that the business has complied with all state requirements and is in accordance with all relevant laws and regulations. What Does LLC Qualify As?
A Limited Liability Company (LLC) is a type of corporate structure that combines the tax advantages of a partnership with the liability protection of a corporation. The owners (referred to as members) of an LLC are not personally responsible for the debts or liabilities of the business. The business is in charge of its own liabilities.
Although it is not needed by law, operating agreements for LLCs in Mississippi are strongly advised. The ownership structure, managerial roles, and business practices of the corporation are described in this document. It can assist in preventing member disagreements and offer a clear direction for the company’s future. What Do I Need to Do to Open a Business in Mississippi?
1. Register your company with the Mississippi Secretary of State
3. Obtain any required licenses and permits
7. Create a business plan and marketing strategy
In conclusion, despite their apparent similarity, the Certificate of Existence and the Articles of Incorporation differ significantly from one another. The Certificate of Existence attests to a company’s good standing with the state government, whereas the Articles of Incorporation establish a corporation as a distinct legal entity. Additionally, operating agreements for LLCs are strongly advised but not necessary in Mississippi. You must complete a number of processes in order to open a business in Mississippi, such as registering your company with the government and getting any necessary licenses and permissions.
Starting a business requires a number of processes, such as selecting a business concept, coming up with a business strategy, deciding on a business structure, registering your company with the government, securing the required licenses and permissions, and establishing a financial and accounting system. Depending on the business structure you select, you may need to file Articles of Incorporation or other formation documents in order to register your business with the state. In order to demonstrate that your company is legitimately registered with the state and in good standing, you will also need to obtain a Certificate of Existence or comparable document. When starting your own business, it is crucial to seek legal or accounting advice to make sure you adhere to all legal and regulatory requirements.