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Can a person be legally held responsible for not having an articles of incorporation?
Wiki User
∙ 13y ago
Depending on the jurisdiction, if an individual is doing business under an assumed name, they are required to file a fictitious business name statement in their city or county. Again, depending on the jurisdiction, this document is required to be updated (or re-registered) on an annual or semi-annual basis.
If a person is doing business as ABC Landscaping Corporation (sending out bills, creating bank accounts, entering into contracts, signing agreements, etc.) and they have not actually created a corporation (by filing Articles of Incorporation with the state), then yes, that individual can be held legally responsible for any actions that were performed using that name (ie. debt).
Articles of Incorporation is a document that is filed with a state's Department of Corporations to begin doing business as a corporation. If a company is doing business as a Limited Liability Company (or LLC) the document is called Articles of Organization. These documents create a separate legal entity so that the people doing business are protected from personal liability and allow the public to find out who notify in the event of a lawsuit.
Wiki User
∙ 13y ago
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Organizational Consent?
Get StartedCorporate law in most states requires several steps in order to complete the formation of a corporation. After the Articles of Incorporation are filed which bring the corporation into existence, bylaws are prepared to further define the corporate structure. Then an "organizational meeting" of the incorporator(s) or the initial director(s) must be held to adopt the bylaws, elect the officers and approve various other actions to be taken. (The meeting will be held by the initial directors if they were named in the Articles of Incorporation; if not, then it will be held by the incorporator(s).) Instead of an actual meeting however, the incorporator(s) or initial directors can take action by unanimous written consent, if they all sign an "Organizational Consent." Use of the Consent method allows the organizers to comply with the formalities of the incorporation without having to provide notice of a meeting and then stage an actual "meeting" which might be attended by a very small number of people, even one.The Consent is used to give formal approval to the incorporation actions already taken and to direct the officers to take further actions which are deemed necessary to make the corporation fully functioning.
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