What is the difference between articles of incorporation and articles of association

As stated above, the articles of incorporation legally establish the corporation with the state and provide basic information about the corporation. Without them, there is no corporation. Because the articles of incorporation do not define the relevant rules, responsibilities, and obligations the business owners must follow and abide by, a company also needs bylaws.

Bylaws, by contrast, are generally not public and are not filed with the state. Bylaws provide the blueprint for the actual operation of the company, setting forth the key rules and regulations needed for successful day-to-day operations. Articles of incorporation and articles of organization are similar filings, with one key difference: articles of incorporation are used to create a corporation, whereas articles of organization are used to create a limited liability company LLC.

Corporations and LLCs have different benefits and drawbacks. One key benefit of an LLC is that it protects the corporate owners from corporate liability more expansively than a corporation. However, unlike with a corporation, it is difficult for an LLC to transfer holdings, making it an undesirable corporate structure for entities looking to have outside investors.

An individual seeking to start a corporation or LLC should carefully consider the desired corporate structure, and be sure to file the correct incorporation paperwork. The articles of incorporation are an essential part of forming a corporation. Companies should carefully draft their articles, and make sure they are compliant with the law of the state of incorporation.

This site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Learn more about what we do with these cookies in our privacy policy. What Are Articles of Incorporation? Corporate Name and Principal Place of Business In order to incorporate, the company must include the name that it will be doing business under. In addition, any false statement or misrepresentation to SBA may result in criminal, civil or administrative sanctions including, but not limited to: 1 fines and imprisonment, or both, under 15 U.

I certify that:. What is the difference between Articles of Incorporation and Bylaws? Widerman Malek. Business Law. Owners, also known as members, organize a business as a limited liability company, or LLC, to limit personal liability while allowing profits and losses to pass directly to the members. Members can be any type of legal entity, such as individuals, partnerships or corporations. Owners, also known as shareholders, organize a business as a corporation to limit personal liability.

The corporation becomes a fictional person responsible for its actions. Each state has its own laws regarding the information needed for articles of organization. Typically, an LLC is required to provide its name, the address and name of its registered agent, the address of its principal office, which may be the same as that of the agent, and the duration of formation, which may be perpetual.

Limited companies in the U. The articles of association in the U. Under general U. A cooperative association and a limited liability company should have contractual documents written that describe what each member is responsible for and how the profits and other responsibilities are divided.

Because of the legal nature of these documents, readers should seek independent advice from a legal professional before continuing. Based in Traverse City, Mich. His work primarily appears on various websites.