Starting and operating a business can be quite difficult, especially if you are not familiar with the associated legal obligations. A Letter of Authority from the Georgia Corporations Division is one of the crucial documents you must receive as a business owner in Georgia. To act as a registered agent for a corporation, this document is necessary. This article will discuss the three types of corporations, what a letter of authority is, which firms have a continuous existence, how bylaws and articles of incorporation differ, and what a letter of authority is.
An official letter of authority is a document that gives a registered agent the power to act in a corporation’s name. Every corporation in Georgia must have a registered agent who can take legal notices and process serving on their behalf. The Georgia Corporations Division issues the letter of authority, which must be submitted with the articles of incorporation. It’s crucial to understand that the letter of authority must always be presented with the Articles of Incorporation and is not a stand-alone document.
The provision of permanent existence is one advantage of incorporation in Georgia. As a result, your corporation will be able to continue operating even if its owners or stockholders pass away. In contrast, a sole proprietorship or partnership sees its operations end upon the passing of its owners or partners.
Every corporation in Georgia is required to have bylaws and articles of incorporation, two crucial legal documents. The legal documents that create the corporation and specify its structure, goal, and management are known as the Articles of Incorporation. On the other hand, the corporation’s operating procedures are governed by its bylaws. The corporation’s management structure, decision-making process, and meeting procedures are all covered in greater detail in the bylaws.
Georgia recognizes three different types of corporations: C corporations, S corporations, and nonprofit corporations. A typical corporation that deducts taxes from its profits is a C corporation. For the purpose of federal taxation, a S corporation is a corporation that has chosen to pass through its income, deductions, and credits to its shareholders. A corporation that is set up for philanthropic, educational, religious, or scientific purposes is known as a nonprofit organization.
The distinction between articles of organization and articles of incorporation should also be noted. Limited liability companies (LLCs) must file Articles of Organization, whereas corporations must file Articles of Incorporation. The requirements and structures of the two documents differ significantly, even though they both form the legal company.
In conclusion, each business owner wishing to incorporate in Georgia must comprehend the Letter of Authority from the Georgia Corporations Division. It is significant to remember that the letter of authority should be submitted with the articles of incorporation and is not a stand-alone document. There are three types of corporations in Georgia, and bylaws and articles of incorporation are essential legal papers that every corporation must possess.