Non Profit Corporate By Law


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Non Profit Corporate By Law

Non Profit Corporate By Law

A corporation is essentially an entity that exists separate and apart from its owners. Corporations are required to have at least one owner and owners are called shareholders or stockholders; ownership interests are referred to as stock. Because a corporation exists separate and apart from the owners, the owners are protected from debts and liabilities.

Forming a Corporation

A corporation is established when articles of incorporation are filed with the secretary of state. This document establishes the reason for the enterprise and in some states it is referred to as a certificate of incorporation or a charter. The articles should clearly state the business purpose, but at the same time that description should also allow the business flexibility to grow and evolve. The basic information that should be stated the business' name and address, the name of the incorporators, the intended duration of the business entity (either perpetual or of limited duration) and the purpose of the business.

An incorporator is the responsible individual for filing the articles with the secretary of state. In many states, the incorporator cannot be an owner, officer or director of the business entity. A legal agent is a third party who is not affiliated with the business entity who will be responsible for accepting any legal process papers filed against the business. A legal agent can be a law firm, but there are also professional organizations that perform these duties.