Updated November 23, 2020:

Articles of Incorporation Overview

An articles of incorporation example for profit is the typical foundation document that might be used to start a for-profit business corporation. A for-profit business is a business whose purpose is to enrich its owners, as opposed to a non-profit business, whose purpose is to enrich others. A for-profit’s articles of incorporation are the legal papers that must be filed with its state’s government to be officially registered as a business.

Articles of Incorporation Purpose

Articles of incorporation are necessary for the state to maintain proper records of what businesses are operating there and what the status of each business is. Generally, the state will provide a pdf for people to fill out and file, but almost anything can be included in the articles of incorporation so long as they contain the information required by the state. Such requirements can vary somewhat by state, but properly filed articles of incorporation should detail:

  • Business name.
  • Business address.
  • Registered agent name and address.
  • Incorporator’s name and address.
  • Number of shares (in the case of corporations).

Additionally, the articles may also detail:

  • Director’s names (if any).
  • Business purpose.
  • Business starting provisions.

Benefits of Incorporation

In addition to getting your business registered with the state, articles of incorporation can also offer several other key benefits, such as:

  • Personal asset protection against legal action and creditors.
  • Options for tax management for deductions and income.
  • Allowances for the sale of shares to raise business capital.
  • Allowances for separation of entity status.
  • An increase in business credibility.

Articles of Incorporation Format Example

Articles of incorporation may take on many formats so long as they contain all of the necessary information. One outline for an articles of incorporation that meets this requirement is as follows:

  1. Paragraph 1: State the purpose of the document (forming a for-profit business as per the requirements of the state)
  2. Paragraph 2: State the name of the business and the name the business will be operating under.
  3. Paragraph 3: State the business’s period of duration. If no end date is to be assigned to it, state that it is perpetual.
  4. Paragraph 4: State the business’s address and the registered agent’s address.
  5. Paragraph 5: State the format of the business’s structure. If it is to have a board of directors, state who the director will be along with their address.
  6. Paragraph 6. If the business is a corporation, state the number of shares it will be authorized to issue.
  7. Paragraph 7: If the business is a corporation, state what class of stock it is authorized to issue, when it will be issued to shareholders, what their voting rights will be, and how asset distribution will be handled in the event of a liquidation.
  8. Paragraph 8: If the business is a corporation, state how share transference will be handled; if it is another type of business, state how ownership transference may occur, if at all.
  9. Paragraph 9: If the business is a corporation, state whether or not the shareholders will have the preemptive right to purchase a new issue of stock, should it occur.
  10. Paragraph 10: State who has the power to amend, adopt, or repeal bylaws for the business. This may be, for example, the board of directors or shareholders for a corporation, or managers in a limited liability company (LLC).
  11. Paragraph 11: If the business is a corporation, state how the shareholders’ votes will be calculated for a new director.
  12. Paragraph 12: State when the fiscal year will end for the business.
  13. Paragraph 13: If the business is a corporation, include boilerplate language on indemnification stating that corporation members are not required to be indemnified for gross negligence by the founders of the corporation.
  14. Paragraph 14: If the business is a corporation, include boilerplate language stating that corporate directors or officers will not be liable to other corporate members’ errors in judgment made in good faith.
  15. Paragraph 15: State the name and address of the incorporator.
  16. Paragraph 16. Include the incorporator signature(s) and the date. State that those who sign the document assert the contents of the document to be true.
  17. Paragraph 17. List contact information for the filer in case of filing difficulties.

There are, of course, other ways articles of incorporation may be set out. If you need help understanding articles of incorporation example for profit, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.