For contractors aspiring to establish a corporation or a Limited Liability Company (LLC), the nuances about Articles of Incorporation and Articles of Organization are important to understand.
These foundational documents play a pivotal role in shaping the identity, governance, and operational framework when starting your contracting business. In this blog, we unravel the distinctions between Articles of Incorporation and Articles of Organization, providing clarity to streamline the path to success for your contracting business going forward.
Articles of Incorporation
The Articles of Incorporation is a legal document filed with the state to officially establish a corporation. It outlines the fundamental details, structure, and governance of your contracting company.
Entity Type
Used for the formation of corporations, including LLCs, S corporations, and C corporations.
Purpose
This document is filed with the state to formally create your contracting corporation. It outlines fundamental characteristics, such as its name, purpose, structure, stock details, and sometimes information about its directors and officers. This will also be used for purposes of tax filings.
Key Features
Describes the structure of your contracting corporation, the rights and responsibilities of shareholders, and details about how the company will be governed.
Articles of Organization
The Articles of Organization is a legal document filed to create a Limited Liability Company (LLC). It specifies key information about the contracting LLC structure, members, and operational aspects.
Entity Type
Used for the formation of Limited Liability Companies (LLCs).
Purpose
Filed to create an LLC, the Articles of Organization provide essential information about the structure and operations of your contracting company. This includes details such as the LLC’s name, purpose, members, and sometimes its management structure.
Key Features
Outlines the ownership and management structure of the LLC, the rights and responsibilities of members, and other basic operational details of your contracting business.
In Conclusion
While both Articles of Incorporation and Articles of Organization are foundational documents for business entities, they serve different types of entities and contain information specific to the structure and governance of each entity type. The choice between them depends on the legal structure a business owner intends to establish for their contracting company.
We’re here to get you started on creating your contracting business! If you have questions about the process or want to get started, contact us today! Or head over to the Business Setup page for more information.
