What Is the Asian Infrastructure Investment Bank (AIIB)?
The Asian Infrastructure Investment Bank (AIIB) is a new international development bank that provides financing for infrastructure projects in Asia. It began operations in January 2016.
How the Asian Infrastructure Investment Bank (AIIB) Works
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank headquartered in Beijing. Like other development banks, its mission is to improve social and economic outcomes in its region, Asia, and beyond. The bank opened in January 2016 and now has 105 approved members worldwide, as of Jul. 30, 2022.
The History of the Asian Infrastructure Investment Bank
China’s leader Xi Jinping first proposed an Asian infrastructure bank at an APEC summit in Bali in 2013. Many observers have interpreted the bank as a challenge to international lending bodies, which some consider too reflective of American foreign policy interests such as the International Monetary Fund (IMF), the World Bank and the Asian Development Bank.
In this bank’s case, China controls half of the bank’s voting shares, which gives the perception that the AIIB will function in the interests of the Chinese government. The U.S. has questioned the bank’s governing standards and its social and environmental safeguards, perhaps pressuring allies not to apply for membership. However, despite American objections, approximately half of NATO has signed on, as has nearly every large Asian country, with the exception of Japan. The result is widely considered in an indicator of China’s growing international influence at the expense of the United States.
The Structure of the Asian Infrastructure Investment Bank
The bank is headed by a Board of Governors composed of one Governor and one Alternate Governor appointed by each of the 86 member countries. A non-resident Board of Directors is responsible for the direction and management of the Bank such as the Bank’s strategy, annual plan and budget and establishing policies and oversight procedures.
The bank staff is headed by a President who is elected by AIIB shareholders for a five-year term and is eligible for re-election once. The President is supported by Senior Management including five Vice Presidents for policy and strategy, investment operations, finance, administration, and the corporate secretariat and the General Counsel and Chief Risk Officer. Mr. Jin Liqun is the current President.
Asian Infrastructure Investment Bank Priorities
The bank’s priorities are projects that promote sustainable Infrastructure and to support countries that are striving to meet environmental and development goals. The bank funds projects linking countries in the region and cross-border infrastructure projects for roads, rail, ports, energy pipelines and telecoms across Central Asia and maritime routes in South East and South Asia and the Middle East. The bank’s priorities also include private capital mobilization and encouraging partnerships that stimulate private capital investment such as those with other multilateral development banks, governments, and private financiers.
An example of an AIIB project is a rural road connectivity initiative that will benefit approximately 1.5 million rural residents in Madhya Pradesh, India. In April 2018, the AIIB announced the project, which is also expected to improve the livelihoods, education, and mobility of the residents of 5,640 villages. The project is a U.S. $140-million jointly financed by the AIIB and the World Bank.
The term affirmative action refers to a policy aimed at increasing workplace and educational opportunities for people who are underrepresented in various areas of our society.
Affirmative action focuses on demographics with historically low representation in leadership, professional, and academic roles. It is often considered a means of countering discrimination against particular groups.
Affirmative action programs are commonly implemented by businesses and governments by taking individuals’ race, sex, religion, or national origin into account when hiring.
Key Takeaways
Affirmative action seeks to reverse historical trends of discrimination against individuals with certain identities.
It provides financial assistance to groups that historically have been and continue to be subjected to forms of discrimination.
Policies often implement hiring quotas, provide grants and scholarships, and may also deny government funding and contracts to institutions that fail to follow policy guidelines.
Affirmative action now includes assistance for gender representation, people with disabilities, and covered veterans.
Criticism of affirmative action emphasizes high program costs, the hiring of fewer qualified candidates, and a lack of historical progress in equal representation.
How Affirmative Action Works
The main purpose of affirmative action is to diversify various parts of society. It is a government-backed policy that was developed to provide inadequately represented groups of people with access to opportunities in academia, the private workforce, and government jobs.
These opportunities include admission to schools and jobs in professional positions, as well as access to housing and financing.
History and Implementation
The affirmative action policy rose to prominence in the United States in the 1960s as a way to promote equal opportunity for various segments of society. The policy was developed to enforce the Civil Rights Act of 1964, which sought to eliminate discrimination.
Early implementations of affirmative action largely focused on halting the continued social segregation of minorities and other disadvantaged individuals from institutions and opportunities.
Despite legislation that outlawed discrimination practices in the U.S., tangible change in the status quo was not immediate.
In more recent years, campaigns have expanded to make organizations and institutions even more inclusive by pushing for greater gender diversity. Newer policies are also aimed at providing more access to opportunities for covered veterans and people with disabilities.
Covered veterans are veterans who are disabled, who served on active duty in a war or other campaign and have a campaign badge or a service medal, or who are recently separated from the Armed Forces.
Elements of Affirmative Action
Efforts to stimulate change can take the form of financial assistance such as grants, scholarships, and other support earmarked to help with access to higher education opportunities.
In addition, hiring practices may be structured to require the inclusion of diverse candidates for consideration for job openings. Government agencies may mandate that companies and institutions populate their ranks with a minimum percentage of qualified professionals from varying ethnicities, genders, and cultures.
Failure to meet such requirements could disqualify institutions from receiving government funding or being able to compete for public contracts.
People confuse employment equity with affirmative action. There’s a distinct difference between the two. Employment equity attempts to ensure that all individuals are treated equally while affirmative action actually supports those people in particular who historically have been denied opportunities.
Examples of Affirmative Action
Affirmative action has been put to work since the 1960s, despite lack of progress at times and rulings by legal authorities such as the Supreme Court that have hindered it. Here are some examples of the policy in action.
In 1965, President Lyndon B. Johnson issued Executive Order 11246. It required that all government contractors and subcontractors expand job opportunities for minorities. It also established the Office of Federal Contract Compliance (OFCC) to enforce the order.
In 1970, the Labor Department ordered and authorized flexible goals and timetables to address the underutilization of minorities by federal contractors. In 1971, women were included in the order.
In 1973, President Richard M. Nixon signed the Rehabilitation Act of 1973. It required agencies to submit an affirmative action plan to the EEOC that detailed the hiring, placement, and advancement of individuals with disabilities.
In 1983, President Ronald Reagan issued Executive Order 12432. It required every federal agency with substantial procurement or grant-making authority to develop a Minority Business Enterprise development plan.
In 1990, President George H.W. Bush signed the Americans with Disabilities Act. A year later, he signed the Civil Rights Act of 1991.
In 1998, the U. S. House of Representatives and the U. S. Senate stopped attempts to eliminate specific affirmative action programs. Both houses of Congress prohibited the abolishment of the Disadvantaged Business Enterprise program. In addition, the House refused to allow the elimination of affirmative action in admissions in higher education programs funded through the Higher Education Act.
In 2022, the Wall Street Journal reported that dozens of major U.S. companies including Apple, Alphabet, American Airlines, and General Motors were urging the Supreme Court to uphold the continued use affirmative action policies in college admissions. They asserted that greater diversity on college campuses contributed to ongoing innovation in commerce and successful business endeavors.
Advantages and Disadvantages of Affirmative Action
The implementation and continued use of affirmative action policies have drawn strong support as well as staunch criticism.
Advantages
An obvious benefit of affirmative action is the opportunities they provide to people who otherwise might not have them. These opportunities include access to education for students who may be disadvantaged and career advancement for employees who may be blocked from rising up the corporate ladder.
Proponents of affirmative action say that the effort must continue because of the low percentages of diversity in positions of authority and in the media, as well as limited acknowledgment of the achievements of marginalized or unrepresented groups.
Disadvantages
Opponents of affirmative action frequently call these efforts a collective failure. They cite as evidence the tiny changes to the status quo after decades of effort. The cost of such programs, coupled with a belief that affirmative action forces the populace to make unwarranted accommodations, drives a significant part of the opposition.
Certain individuals believe that there is little to no bias in society. They argue that affirmative action results in reverse discrimination, which can often lead to qualified candidates being overlooked in academics and the workplace in favor of less qualified candidates who meet policy standards.
Affirmative Action Statistics
Affirmative action is a very controversial topic and often leads to heated debates between those who support it and people who feel it doesn’t benefit society. Is there a way to quantify how people feel and how it’s working?
According to a Gallup poll, more than half of Americans (61%) believe in affirmative action policies. This level of support has increased since the last poll, where only 47% to 50% of individuals thought affirmative action was necessary. This increase in support is especially important, given the active issues surrounding race and identity in the U.S. and elsewhere.
Many Americans feel positive about diversity. They are comfortable with the makeup of their communities, saying diversity positively impacts society as a whole.
There is some divide when it comes to identifying race and ethnicity for purposes of hiring. In fact, about 74% of individuals feel that a candidate’s racial or ethnic background shouldn’t be considered when hiring or promoting them. These activities should only be based on someone’s merit and qualifications.
What Is the Goal of Affirmative Action?
The goal of affirmative action is to increase opportunities for individuals and groups that historically have been underrepresented or, in some cases, barred, from certain areas of academia, the government, and the private sector workforce. Affirmative action policies provide funding in the form of grants and scholarships to these communities.
Policies were adopted to help those from different racial backgrounds and national origins. They have expanded to address gender, sexual orientation, and various disabilities.
What Has Been the Result of Affirmative Action Policies in Higher Education?
Affirmative action policies have helped diversify higher education. When first adopted, the student body at most higher education institutions was primarily white. That has changed, leading to more diverse and vibrant student populations across the country.
How Did Regents v. Bakke Change Affirmative Action Policies?
The Regents v. Bakke case changed affirmative action policies by striking down the use of racial quotas. The case was presented by Allan Bakke, who claimed he was denied admission to medical school at the University of California on two separate occasions because he was white. The Supreme Court ruled in Bakke’s favor, saying racial quotas were unconstitutional.
Which U.S. President First Defined and Used the Term Affirmative Action?
That was President John F. Kennedy. He did so in 1961, telling federal contractors to take “affirmative action to ensure that applicants are treated equally without regard to race, color, religion, sex, or national origin.”
An attorney-in-fact, also called an “agent,” is a person who is authorized to act on behalf of another person, known as the “principal,” typically to perform business or other official transactions. The principal usually designates someone as their attorney-in-fact by assigning them power of attorney, although a court may choose to assign it if the person being represented is incapacitated. The rules regulating power of attorney vary from state to state.
An attorney-in-fact is not necessarily a lawyer. Indeed, attorneys-in-fact don’t require any special qualifications at all. They can be a family member or close friend. Power of attorney may also be granted to more than one person. In such a case it should be stated whether a simple majority or unanimity is required for an action to be taken.
Key Takeaways
An attorney-in-fact is someone who is designated to act on behalf of another person, whether in business, financial, or personal matters.
An attorney-in-fact is designated through the granting of power of attorney, usually by the person who will be represented.
An attorney-in-fact need not be an attorney-at-law, which is another name for “lawyer.” The former makes decisions for a principal, while the latter advises and represents a client but is not involved in decision-making.
The person appointing the attorney-in-fact is called the “principal,” and the attorney-in-fact is sometimes referred to as the “agent.”
Sometimes the courts can assign an individual power of attorney for another person if they have become incapacitated.
Attorney-in-Fact and Power of Attorney
An attorney-in-fact is a person who has been legally appointed to act on behalf of another person in a legal or business matter. The person appointing the attorney-in-fact is called the “principal,” and the attorney-in-fact is sometimes referred to as the “agent.”
An attorney-in-fact is usually appointed through a legal document called a power of attorney (POA). This document gives the attorney-in-fact the authority to make decisions and take actions on behalf of the principal in a variety of legal and financial matters. For example, an attorney-in-fact might be given the power to sign documents, manage a bank account, or sell property on behalf of the principal.
The attorney-in-fact is not required to be an actual lawyer, but they must act in the best interests of the principal and follow any instructions or guidelines set forth in the power of attorney. The attorney-in-fact is also required to keep the principal’s affairs confidential and to keep records of all actions taken on behalf of the principal.
It’s important to note that an attorney-in-fact is not the same as a lawyer or an attorney. A lawyer is a professional who is licensed to practice law, while an attorney-in-fact is simply a person who has been given the authority to act on behalf of another person.
Attorneys are trained in the legal system and are responsible for representing clients in legal matters, such as in court or in negotiations with other parties. Attorneys are also responsible for giving legal advice and guidance to their clients.
An attorney-in-fact, on the other hand, is any person who has been appointed to act on behalf of another person in a legal or business matter.
Types of Power of Attorney
There are two basic types of power of attorney (POA) granted to attorneys-in-fact.
General – General power of attorney grants the attorney-in-fact not only the right to conduct any business and sign any documents on behalf of the principal, but to make decisions, including financial decisions, on their behalf.
Limited – Under a limited power of attorney assignment, also sometimes known as “special power of attorney,” the attorney-in-fact can be authorized to conduct certain transactions and make some decisions but not others. They are limited to the topics specified in the assigning document.
Anyone assigning power of attorney should take care to choose someone they trust.
The Powers and Duties of an Attorney-in-Fact
If the attorney-in-fact is designated as a general power of attorney, they are allowed to conduct any actions that the principal would reasonably take. This means an attorney-in-fact would be able to open and close bank accounts, withdraw funds, trade stocks, pay bills, and cash checks—all on behalf of the principal.
With a limited power of attorney, the attorney-in-fact is granted broad powers in one or more areas but not others. For example, the attorney-in-fact could be authorized to carry out transactions at the direction of the principal but not to make business or financial decisions. It could also be narrower, such as only granting the right to sign documents related to the pending sale of a specific piece of property.
Attorney-in-Fact vs. Attorney-at-Law
As noted above, an attorney-in-fact need not be a lawyer. And another term for “lawyer” is “attorney-at-law.” If you have passed a state bar exam and are thus legally qualified in that state to prosecute and defend actions in a court on behalf of a client who has retained you, then you are an attorney-at-law.
Their functions are also different. An attorney-in-fact must make decisions for their principal, while an attorney-at-law makes no decisions for their client. Instead, they offer advice to their client and can represent them in the courtroom.
When a power of attorney is deemed “durable,” it continues even after the principal becomes incapacitated, an event that would normally terminate it.
Durable Power of Attorney
A power of attorney generally terminates when a person dies, becomes incapacitated, or consciously chooses to revoke it via a notice filed in court. It can also end if it has a set date or its purpose has been accomplished. However, if it has been designated as a “durable” power of attorney, the attorney-in-fact retains the power of attorney should a principal become incapacitated. In such a situation the attorney-in-fact can continue to make decisions for the principal, including in matters of finance and healthcare.
Durable power of attorney can be granted ahead of time on condition that it only takes effect due to a triggering event, such as when the principal becomes incapacitated. This is also called a “springing” power of attorney. In this case it is a good idea to name one or more successors, as the original designee may be unavailable or, due to changed circumstances, be unwilling to assume the responsibility of becoming an attorney-in-fact.
Why Do You Need an Attorney-in-Fact?
There can be a variety of reasons to designate an attorney-in-fact. It can simply be for convenience, if, for example, you are buying or selling an asset and it is a burden for you to appear in person to close the deal. It can also be for cases in which you cannot act for yourself, whether due to physical or mental incapacity or something less serious, such as travel, illness, or accident.
Does an Attorney-in-Fact Need to Be a Lawyer?
No. An attorney-in-fact can be anyone you wish to designate as such. Often they are a family member or close friend. That said, there is nothing to prevent you from choosing a lawyer, also known as an “attorney-at-law,” as your attorney-in-fact.
What’s the Difference Between an Attorney and Attorney-in-Fact?
It’s important to note that an attorney-in-fact is not the same as a lawyer or an attorney. A lawyer is a professional who is licensed to practice law, while an attorney-in-fact is simply a person who has been given the authority to act on behalf of another person.
Are Power of Attorney and Attorney-in-Fact the Same Thing?
Absolutely not. An attorney-in-fact is someone to whom you consent to give your power of attorney. When making decisions on your behalf, the attorney-in-fact is usually required to show the written document providing power of attorney as proof of their authority.
What Are the Liabilities of Being an Attorney-in-Fact?
As an attorney-in-fact, you are legally responsible for carrying out the duties and responsibilities assigned to you by the principal. This means that you have a legal obligation to act in the best interests of the principal and to follow the instructions and guidelines set forth in the power of attorney. If you fail to fulfill your duties as an attorney-in-fact, you may be held liable for any damages or losses that result from your actions or inactions. For example, if you make a financial decision on behalf of the principal that results in a loss of money, you may be held financially responsible for that loss.
Additionally, you may be held liable for any actions you take on behalf of the principal that are outside the scope of the power of attorney. For example, if the power of attorney specifically states that you are not authorized to sell the principal’s property, but you go ahead and sell it anyway, you could be held liable for any losses that the principal incurs as a result of the sale. To avoid potential liability, it’s important to carefully review the power of attorney and make sure you fully understand your responsibilities as an attorney-in-fact. You should also seek legal guidance if you have any questions or concerns about your duties as an attorney-in-fact.
The Bottom Line
An attorney-in-fact is someone who is granted authority to make decisions on behalf of another person, known as the “principal.” Such authority is granted via a written document providing power of attorney to the attorney-in-fact. Power of attorney can be either general or limited to certain specified transactions and topics. Typically, it only lapses if the principal dies, becomes incapacitated, or consciously revokes it through a notice filed in court. However, if it is a durable power of attorney, the attorney-in-fact will continue to serve if the principal becomes incapacitated.
Making a decision to appoint an attorney-in-fact should not be done lightly, and the person so designated should be a person or persons (you can appoint more than one) whom you trust. Family members and close friends are popular choices. If you appoint more than one, be sure to specify if decisions can be made by majority vote or must be unanimous.
Articles of incorporation are a set of formal documents filed with a government body to legally document the creation of a corporation. Articles of incorporation generally contain pertinent information such as the firm’s name, street address, agent for service of process, and the amount and type of stock to be issued. The articles of incorporation are used to legally form the corporation.
Key Takeaways
Articles of incorporation is the documents filed with a government body (usually the state) that signifies the creation of a corporation.
In the U.S., articles of incorporation are filed with the Office of the Secretary of State where the business chooses to incorporate.
Broadly speaking, articles of incorporation include the company’s name, type of corporate structure, and number and type of authorized shares.
While the articles of incorporation are used almost exclusively outside of the company, other documents such as bylaws, operating agreements, or business plans are more useful internally.
By filing articles of incorporation, corporations may gain favorable tax advantages, the ability to issue stock and raise capital, or shield owners from liability.
Understanding Articles of Incorporation
Many businesses in the U.S. and Canada are formed as a corporation, which is a type of business operation that is formed in the state where the company carries out its operations. To be recognized legally as a corporation, a business must incorporate by taking certain steps and making certain decisions required under corporate law. One such step is filing a document known as articles of incorporation.
Articles of incorporation are in the document necessary to register a corporation with a state and acts as a charter to recognize the establishment of a corporation. The document outlines the basic information needed to form a corporation, the governance of a corporation, and the corporate statutes in the state where the articles of incorporation are filed.
Articles of incorporation are also referred to as the “corporate charter,” “articles of association,” or “certificate of incorporation.”
Where to File Articles of Incorporation
In the U.S., articles of incorporation are filed with the Office of the Secretary of State in the state where the business chooses to incorporate. Some states offer more favorable regulatory and tax environments and, as a result, attract a greater proportion of firms seeking incorporation.
For example, Delaware and Nevada attract about half of the public corporations in the U.S., in part because of the state laws that protect their corporations. Once established, the articles become a public record and provide important information about the corporation.
Many states charge filing fees for a business that incorporates in the state, whether the business operates there or not. A business that is incorporated in one state and is physically located or doing business in another state must register in the other state as well, which involves paying that state’s filing fees and taxes.
Depending on the state of incorporation, a company may pay filing fees ranging from $50 (as in Iowa, Arkansas, and Michigan) to $275 (as in Massachusetts) as of 2020. The fees can vary depending on whether the articles of incorporation were filed online or by mail.
Articles of Incorporation Document Requirements
The articles in the document vary by state, but the following items (i.e. “articles” are typically included:
Name of corporation
Name and address of the registered agent
Type of corporate structure (e.g., profit corporation, nonprofit corporation, non-stock corporation, professional corporation, etc.)
Names and addresses of the initial board of directors
Number and type of authorized shares
Duration of the corporation, if it wasn’t established to exist perpetually
Name, signature, and address of the incorporator, who is the person in charge of setting up a corporation
Most states also require the articles to state the firm’s purpose, though the corporation may define its purpose very broadly to maintain flexibility in its operations. Amazon’s certificate of incorporation, for example, states that the corporation’s purpose is “to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.”
Other provisions outlined in a company’s articles of incorporation may include the limitation of the directors’ liability, actions by stockholders without a meeting, and the authority to call special meetings of stockholders. Each state has certain mandatory provisions that must be contained in the articles of incorporation and other optional provisions that the company can decide whether to include.
While domestic companies will submit an article of incorporation, foreign corporate entities must file a certificate of registration to operate in a given state.
Articles of Incorporation vs. Other Documents
Articles of Incorporation vs. Bylaws
While the articles of incorporation are externally-filed formation documents, bylaws are more of use to a company when used internally. Bylaws set the internal processes and organization of how the company should be run. Bylaws outline the rules and procedures for the management of a company. Not all states require a company to maintain bylaws, though many require a company to formally memorialize the bylaws.
Articles of Incorporation vs. LLC Operating Agreement
Articles of incorporation are required state filings to form a corporation, while LLC operating agreements are used exclusively for LLCs. In addition, the articles of incorporation outline the information structure of the company. Meanwhile, operating agreements often outline how internal disputes will be resolved between members or owners. An LLC operating agreement acts more of a personal protection document than the articles of incorporation.
Articles of Incorporation vs. Business License
A business license often permits a company to operate within a specific jurisdiction or industry. It gives the holder the right to start and run a business in the designed geographical location that issues the license. The rights granted by a business license are often more specific and niche than the articles of incorporation; though similar information may be required for both, the articles of incorporation simply legally form an organization and is the highest governing document for a corporation.
Articles of Incorporation vs. Business Plan
A business plan is an internal document that may be shared with major customers, investors, or lending institutions that communicates the formal operating plan of a company. Often a strategic document, a business plan is mainly used by internal management as a roadmap for decision-making. This is in stark contrast of the articles of incorporation which are information-only, non-strategic requirements for legal reasons.
A company should internally maintain a copy of its articles of incorporation request.
Importance of Articles of Incorporation
A corporation should take care when filings its articles of incorporation as these formation documents carry great significance. For starters, they are legally required to structure a new business or company. The corporation can not form and be recognized by the state as a legal business entity until the forms are registered.
Once a business is incorporated, it often has a greater ability to raise capital via stock issuances. A corporation cannot sell stock until is incorporated via the filing of its articles of incorporation. Corporations may also receive more favorable tax treatment compared to individual or personal tax rates.
In addition, there are personal liability considerations for companies being formed. Individuals are often held liable for a company’s obligations until it is incorporated. By forming a legal corporation, business owners may be shielded from some personal liability for the company’s debts. This liability protection cannot occur until the articles of incorporation have been filed.
Example of Articles of Incorporation
The image below captures the first few requirements from the Secretary of State form required by the state of Washington. This form is to be completed and returned to the government agency for review.
Articles of Incorporation, Sample (WA State).
Some sections simply require a check mark for applicability or a ‘yes/no’ mutually exclusive selection. Other areas (such as the purpose of the corporation) require written response. As designated by the top of the form, this specific article of incorporation document template is for specific use for the formation of non-profit corporations.
The Washington State Articles of Incorporation form ends with the certification section in which an incorporator must certify the information given is correct to the best of their knowledge. The incorporator is also required to provide some personal information along with their signature.
Articles of Incorporation, Certification Section (WA State).
The form above had been filed by Parrot Foundation, a Washington nonprofit organization. A snipped of Parrot Foundation’s articles of incorporation has been provided below as an example of the dates, structure, and business purpose a company may request when filing its articles of incorporation.
Parrot Foundation, Articles of Incorporation.
What Is the Purpose of the Articles of Incorporation?
The purpose of the articles of incorporation is to legally form a corporation. The filing submits information to a state agency, and the state agency officially determines whether the corporation can be recognized as a formal company. Once incorporated, the business may receive a number of different benefits (mentioned below) via its status as a corporation.
What Are the Benefits of Filing Articles of Incorporation?
By filing articles of incorporation, a company can officially become incorporated. Once incorporated, the company may receive favorable tax benefits and have the ability to raise capital by issuing stock. In addition, the owners of the corporation have different liability over company debts once a corporation is formed.
How Do You Write Articles of Incorporation?
Articles of incorporation are filed with your state’s Secretary of State office. That department provides a form that requests a variety of information about your newly forming corporation. Upon completing the required fields, the form is submit back to the Secretary of State for review. The state agency that reviews the form will contact you should they have any clarifying questions regarding your information.
Can One Person Submit Articles of Incorporation?
Yes, it is possible to incorporate a business with just one employee. That single owner will be responsible for all aspects of the company. In addition, that sole individual will be the only shareholder. However, they may be listed as the only member on the articles of incorporation.
The Bottom Line
If a company wants to become a corporation, it must file articles of incorporation with its appropriate state agency. This formation document is required as part of the incorporation process, and the articles provide the state a variety of information about the company and its incorporators. Different from other legal documents that outline how a company will operate internally, the article of incorporation is intended to help external parties evaluate and form a corporation.
