This state-specific form must be filed with the appropriate state agency in compliance with state law in order to create a new non-profit corporation. The form contains basic information concerning the corporation, normally including the corporate name, names of the incorporators, directors and/or officers, purpose of the corporation, corporate address, registered agent, and related information.
Articles of Incorporation vs Certificate of Formation Texas: Understanding the Differences In the state of Texas, when establishing a business entity, it is essential to have a clear understanding of the differences between Articles of Incorporation and Certificate of Formation. These legal documents serve as the foundation for any organization and must comply with the specific requirements outlined by the Texas Secretary of State. Articles of Incorporation: The Articles of Incorporation is a legal document submitted to the Texas Secretary of State by individuals who wish to establish a corporation. This document outlines crucial information about the company, such as its name, registered agent, purpose, and the number of shares authorized to issue. It essentially outlines the structure and governance of the corporation. In Texas, there are various types of Articles of Incorporation, each catering to different types of corporations, including: 1. General Business Corporation Articles of Incorporation: This type of Articles of Incorporation is used when establishing a traditional for-profit corporation engaged in any lawful business activity. 2. Professional Corporation Articles of Incorporation (PC): Professionals such as doctors, lawyers, and accountants choose this type of Articles of Incorporation. It enables these professionals to limit liability while providing professional services. 3. Nonprofit Corporation Articles of Incorporation: These Articles of Incorporation are for entities formed with a charitable, educational, religious, or scientific purpose. They must meet specific IRS guidelines to qualify for federal tax-exempt status. 4. Professional Association Articles of Incorporation (PA): Similar to professional corporations, professional associations consist of individuals engaged in a specific profession but are governed differently. Certificate of Formation: While the Articles of Incorporation is specifically for corporations, the Certificate of Formation applies to other types of business entities, including limited liability companies (LCS), partnerships, and limited partnerships. The Certificate of Formation is a document filed with the Texas Secretary of State that details essential information about the business. It includes the name and address of the business entity, its registered agent, management structure, purpose, and duration (if applicable). Types of Certificates of Formation in Texas include: 1. Texas Limited Liability Company Certificate of Formation (LLC): Common for small businesses, the LLC provides limited liability protection to its members and flexibility in terms of taxation and management. 2. Texas Partnership Certificate of Formation: This document is used to form general partnerships in Texas. Partnerships are formed when two or more individuals come together to carry out a business for profit. 3. Texas Limited Partnership Certificate of Formation: Limited partnerships differ from general partnerships, as they involve general partners and limited partners. This structure allows for limited liability for certain partners while still having the flexibility of a partnership. In conclusion, understanding the distinctions between Articles of Incorporation and Certificate of Formation is crucial to determine the correct document for establishing your business entity in Texas. Whether establishing a corporation or another business structure, complying with the specific requirements outlined by the Texas Secretary of State ensures a solid legal foundation for your organization.Articles of Incorporation vs Certificate of Formation Texas: Understanding the Differences In the state of Texas, when establishing a business entity, it is essential to have a clear understanding of the differences between Articles of Incorporation and Certificate of Formation. These legal documents serve as the foundation for any organization and must comply with the specific requirements outlined by the Texas Secretary of State. Articles of Incorporation: The Articles of Incorporation is a legal document submitted to the Texas Secretary of State by individuals who wish to establish a corporation. This document outlines crucial information about the company, such as its name, registered agent, purpose, and the number of shares authorized to issue. It essentially outlines the structure and governance of the corporation. In Texas, there are various types of Articles of Incorporation, each catering to different types of corporations, including: 1. General Business Corporation Articles of Incorporation: This type of Articles of Incorporation is used when establishing a traditional for-profit corporation engaged in any lawful business activity. 2. Professional Corporation Articles of Incorporation (PC): Professionals such as doctors, lawyers, and accountants choose this type of Articles of Incorporation. It enables these professionals to limit liability while providing professional services. 3. Nonprofit Corporation Articles of Incorporation: These Articles of Incorporation are for entities formed with a charitable, educational, religious, or scientific purpose. They must meet specific IRS guidelines to qualify for federal tax-exempt status. 4. Professional Association Articles of Incorporation (PA): Similar to professional corporations, professional associations consist of individuals engaged in a specific profession but are governed differently. Certificate of Formation: While the Articles of Incorporation is specifically for corporations, the Certificate of Formation applies to other types of business entities, including limited liability companies (LCS), partnerships, and limited partnerships. The Certificate of Formation is a document filed with the Texas Secretary of State that details essential information about the business. It includes the name and address of the business entity, its registered agent, management structure, purpose, and duration (if applicable). Types of Certificates of Formation in Texas include: 1. Texas Limited Liability Company Certificate of Formation (LLC): Common for small businesses, the LLC provides limited liability protection to its members and flexibility in terms of taxation and management. 2. Texas Partnership Certificate of Formation: This document is used to form general partnerships in Texas. Partnerships are formed when two or more individuals come together to carry out a business for profit. 3. Texas Limited Partnership Certificate of Formation: Limited partnerships differ from general partnerships, as they involve general partners and limited partners. This structure allows for limited liability for certain partners while still having the flexibility of a partnership. In conclusion, understanding the distinctions between Articles of Incorporation and Certificate of Formation is crucial to determine the correct document for establishing your business entity in Texas. Whether establishing a corporation or another business structure, complying with the specific requirements outlined by the Texas Secretary of State ensures a solid legal foundation for your organization.