Business Glossary

formal documents prepared by individuals wishing to establish a corporation in the United States. They must file these documents with the authorities in the state in which the corporation wishes to reside. One copy is returned, after being reviewed, and, together with the Certificate of Incorporation, becomes the corporation's charter formally recognizing the corporation as a business entity entitled to begin business operations. Rules governing the company's internal management are set forth in its bylaws.

document filed with a U.S. state by the founders of a corporation. After approving the articles, the state issues a certificate of incorporation; the two documents together become the charter that gives the corporation its legal existence. The charter embodies such information as the corporation's name, purpose, amount of authorized shares, and number and identity of directors. The corporation's powers thus derive from the laws of the state and from the provisions of the charter. Rules governing its internal management are set forth in the corporation's bylaws , which are drawn up by the founders.

document stating the purpose of a private corporation, filed by founders of a corporation at a designated state office, e.g., with the Secretary of State. When approved, it becomes the firm's certificate of incorporation, giving the corporation its legal existence, subject to the laws of the state where incorporated. The filing lists the names of incorporators and amount of authorized shares of stock. After the charter is granted, corporate directors adopt bylaws stating, among other things, the operating rules of the corporation.

document that creates a private corporation according to the general corporation laws of the state.