What Information is Necessary to Include in the Articles of Incorporation?

An important document that establishes a corporation as a legal entity is its articles of incorporation. The corporation’s name, goals, organizational structure, and ownership are all specified in the articles of incorporation. To avoid legal problems and guarantee the success of the organization, it is crucial to provide correct and comprehensive information in the articles of incorporation. What details must be included in the articles of incorporation will be covered in this article.

The name of the corporation is the first detail that needs to be in the articles of incorporation. The name must be original and unclaimed by another corporation operating in the state. A corporate suffix, such as “Inc.” or “Corp.”, is also required to signify the corporation’s status as a distinct legal entity.

The purpose of the corporation must then be stated in the articles of incorporation. The principal function of the corporation and its purpose are described in this section. To prevent any misunderstanding or misinterpretation of the corporation’s objectives, it is crucial to be precise and explicit about its mission.

The ownership and organizational structure of the corporation must be disclosed in the articles of incorporation. This covers the total number of shares, the different stock classes, and the rights and advantages attached to each class. To guarantee that the ownership of the corporation stays constant, it is crucial to stipulate the voting rights and limitations on share transfers.

The name and address of the corporation’s registered agent must also be included in the articles of formation. This is the person or business chosen by the corporation to receive legal documents on its behalf.

Let’s now talk about some relevant issues. The cost to apply for 501c3 status in Ohio varies based on the size and complexity of the organization. A 501c3 application requires a $275 filing fee, with possible extra costs for accounting and legal services.

In Ohio, nonprofit organizations are exempt from both state and federal income tax obligations. Nevertheless, depending on their actions, individuals can still be compelled to pay sales tax and other taxes.

Social welfare organizations are classified as 501(c)(4) organizations and are exempt from paying federal income taxes. These groups are prohibited from running political campaigns because their main objective is to advance social welfare.

Public charities, private foundations, and social welfare groups are the three primary categories of non-profit organizations. While private foundations concentrate on giving funds to other nonprofit groups, public charities offer direct services to the general public. As was already established, social welfare groups work to advance social welfare.