Adjust Company Charter For Free

A corporation is a business entity that is owned by its shareholder(s), who elect a board of directors to oversee the organization's activities. The corporation is liable for the actions and finances of the business ? the shareholders are not.

Corporate charters serve to represent the contracts that exist between corporations and their stockholders. It outlines the rights of stockholders and the powers of the corporation's officers. An incorporator must draft and submit documents to the secretary of state in the state where the business will be incorporated.

Charter in American English 1. a document, issued by a sovereign or state, outlining the conditions under which a corporation, colony, city, or other corporate body is organized, and defining its rights and privileges. 2. ( often cap) a document defining the formal organization of a corporate body; constitution.

At the most basic level, the corporate charter includes the corporation's name, its purpose, whether the corporation is a for-profit or nonprofit institution, the location of the corporation, the number of shares that are authorized to be issued, and the names of the parties involved in the formation.

A corporate charter?also known by the term articles of incorporation?is a legal document that the founders of a corporation file with the secretary or registrar of the state in which they intend to operate. Only upon approval of the charter does the business become an officially recognized corporate entity.

The CEO reports to the corporation's board of directors. Chief Operating Officer (COO). Charged with managing the corporation's day-to-day affairs, the COO usually reports directly to the CEO. Chief Financial Officer (CFO) or Treasurer.

Once the corporate charter is filed with, and approved by, the secretary of state, the business is considered incorporated in that state.