Frequently Asked Questions Regarding Certificate of Incorporation in Chicago
An understanding of the Certificate of Incorporation is invaluable for corporate business owners and executives based in Chicago3 min read
An understanding of the Certificate of Incorporation is invaluable for corporate business owners and executives based in Chicago. This essential document lays out a company’s legal identity, obligations, and their respective place in the current legal system. While understanding what this document means and contains can be complex, here are some commonly asked questions regarding Chicago’s Certificate of Incorporation to help clear up any confusion.
What is a Certificate of Incorporation?
A Certificate of Incorporation is a document filed with a state or other governing body which legally creates a corporation. A corporation is a separate legal entity from its founders, and the Certificate of Incorporation serves as a record which outlines the terms, structure, and purpose of the corporation. It allows organizations to take advantage of legal and financial benefits that the corporate structure can provide, such as limitation of liability, tax advantages, and flexibility of ownership. The Certificate of Incorporation is thus the foundation of a successful corporate setup.
What responsibilities do you have when filing a Certificate of Incorporation in Chicago?
There are several responsibilities required when filing a Certificate of Incorporation in Chicago, in accordance with the regulations of the state. To begin, corporate owners will have to state the name of their business, the purpose of the corporation, the name and street address of the registered agent, the amount of stock the corporation will issue, and the name and address of each of the founding members of the corporation. It is also important for the Certificate of Incorporation to include language that outlines the details of the company’s legal structure, such as limitations of shareholder liability and types of shares being issued. Depending on the type of business, additional information may be required.
What is the difference between a Certificate of Incorporation and a Business License?
A Certificate of Incorporation and a Business License are two different regulatory documents. The Certificate of Incorporation is a document which legally forms a corporation and sets out its purpose, obligations, and structure. A business license is a document that allows a company to operate a business in a given locale. While the Certificate of Incorporation is typically required in order to acquire a business license, they function as separate documents and the process of obtaining them is distinct.
Do I need an attorney to file a Certificate of Incorporation in Chicago?
It is not required to have an attorney for the filing of a Certificate of Incorporation in Chicago. However, it is highly recommended that corporate officers consult an experienced attorney when establishing a Corporation. An attorney will be able to properly advise corporate officers on the legal requirements and complexities of the Certificate of Incorporation. UpCounsel is a great resource for companies based in Chicago looking for a consultation on their Certificate of Incorporation. Their experienced network of attorneys provides access to high quality legal services which are tailored to the specifics of a company’s individual needs.
How long does it take to form a corporation in Chicago?
The timeline for forming a corporation varies from state to state, but typically takes around 7-10 days in the State of Illinois. It is important to note that the timeline for the approval of the Certificate of Incorporation may take longer depending on the complexity and amount of information included in the document.