Although starting a business is an exciting endeavor, many business owners could find themselves getting confused by the legalese that goes along with it. The bylaws and articles of organization are two crucial legal documents that every business owner must comprehend. Despite the fact that they might sound identical, they have different functions and are required for various reasons.
A corporation’s existence and goals are declared in the articles of organization, commonly referred to as a certificate of incorporation. The owner of the business must include the company’s name, address, and registered agent’s name when submitting the articles of incorporation. Additionally, it specifies the classes of stock that will be offered to investors as well as the quantity of shares the firm will issue. The Secretary of State or a comparable office in the state where the company is founded must receive the articles of incorporation. Why Are Articles of Incorporation Required?
A vital step in creating a business as a legal entity is submitting articles of incorporation. It gives the business legality and protects the owners from certain liabilities. Additionally, it enables the business to sell stock and raise money through investments. A company’s ability to expand and succeed is restricted since it cannot function as a corporation without articles of incorporation.
The official paperwork that a corporation files with the state to establish its existence are called filed articles. They can be accessed by anybody with an interest in the company when they are filed and become part of the public record.
The policies and procedures that direct a corporation’s internal operations are known as bylaws. They describe how meetings are conducted, board members are chosen, and decisions are made. The company’s officers’ roles, responsibilities, and employment conditions are also outlined in the bylaws, along with the steps to remove them from office. The board of directors normally adopts bylaws, which can be changed as needed.
A professional limited liability company (PLLC) is a particular kind of LLC designed for licensed professionals, such as doctors, lawyers, and accountants. A limited liability company (LLC) is a corporate structure that offers limited liability protection to its owners. The main distinction between the two is that in some areas, only licensed professionals are permitted to offer services without a PLLC.
Depending on the type of business, different licenses in Georgia cost different amounts. In the city of Atlanta, for instance, a basic business license is $75, while a liquor license can cost up to $5,000. It is crucial to do your homework on the particular rules and charges that apply to your industry and location.
In conclusion, it is critical for each business owner to grasp the distinctions between bylaws and articles of organization. A corporation’s bylaws regulate its internal activities, while its articles of incorporation create the corporation’s legal existence. To operate as a company and to safeguard its owners from unlimited liability, articles of incorporation must be filed. The policies and procedures for the company’s activities are outlined in the bylaws. The cost of a company license in Georgia varies depending on the sort of firm, and a specific type of LLC designed for licensed professionals is a PLLC.
After filing the Articles of Organization to the Secretary of State’s office in Georgia, the approval of the LLC normally takes 5-7 business days. The precise time range, nevertheless, can change based on the workload of the Secretary of State’s office at the moment. It’s crucial to remember that the LLC cannot start doing business unless the state has given it the go-ahead.