What it is:
Also called corporation's basic information, such as its location, profit/nonprofit status, board composition and ownership structure. A corporate charter is not the same as bylaws, which set forth the rules for the company's day-to-day operations., a corporate charter is a legal document that sets forth a
How it works (Example):
Specifically, corporate charters typically include the following, though detailed requirements vary by state:
- The 's name and address
- The corporation's purpose
- Whether the corporation is nonprofit or for-profit entity
- The name and address of the corporation's registered agent
- The number of authorized
- The classes and shares values of these authorized
- The directors of the new corporation
The corporate charter must be filed with the secretary of state for the state in which the corporation is headquartered. In most cases, there is fee to do this.
Although many state government websitesbasic templates for corporate charters, many people consult business attorneys when filing their corporate charters because some states more favorable business environments in which to incorporate.
Why it Matters:
Corporate charters give birth to a new. They establish the 's existence. Once they are filed and approved by the secretary of state, a corporate charter represents the legal creation of the .