The first step in registering S Corp is the filing of articles of association which act as articles of association. This document contains the name, address and purpose of the company as well as how you will issue shares. S Corps can only issue one class of shares. If the company has members, you need to explain their roles, needs, and execution times. Company agreements and articles of association also differ due to legal form, obligation, state requirements, tax results, completeness and rigidity. Company agreements are often less formal and easier to change. No, the articles of association and company agreements are not subject to any public service. They should be stored and remain easily accessible to shareholders, investors or members for verification. Company agreements and articles of association work hand in hand to sketch out your business structure and define how you will work legally. However, you have a bit of overlap and share a few similar functions. For example, both contain necessary business information and share similar functionality and structure. Let us first talk about two legal forms of this type, each important, but often confused: the company agreement and the articles of association. Both are legally meaningful documents and each has a unique purpose.
Let`s look at what a company agreement is and how it is different from the articles of association. The articles of association contain the rules and regulations that govern your business. Each state has its own requirements as to the objects to be included in the statutes. Your legal obligation to file a status depends on the nature of the business you own. For example, LLCs are not legally required to file articles, but it is strongly recommended that they have a certificate of creation. On the other hand, every company is legally required to file a statute with the state. Your statuses may require additional information depending on the state in which you work. “Articles of association are filed at the time of creation and are often not updated to include shareholder information, profit distribution methods or other day-to-day business relationships, while corporate agreements can be adjusted more easily to keep up with current operating status,” Gauvreau said. .