Explain how corporations are incorporated in the United States

Question

What will be an ideal response?

Answer 1

Corporations are creatures of state, not federal, law. Each of the 50 states, as well as the District of Columbia, Puerto Rico, and Guam, has a general incorporation statute that stipulates the articles of incorporation to be used in that state. These articles, generally standardized forms, identify the name of the corporation, its registered address and resident agent, the general purpose of the business, the classes of stock to be issued by the corporation and their face value, and the names and mailing addresses of the incorporators. The articles, accompanied by the required fees, are filed with the secretary of state of the state of incorporation, who then issues a certificate of incorporation. Upon issuance of the certificate, the corporation holds its first board meeting, at which a board of directors is elected, bylaws are enacted, and corporate stock is issued. The bylaws are the governing regulations of the corporation and often are the basis for litigation when directors act on behalf of the shareholders of the corporation.