What is the primary function of the Articles of Incorporation?

The primary function of the Articles of Incorporation is to establish the purpose of the corporation. This foundational document is critical because it outlines the corporation's intended business activities, which is essential for legal recognition and regulation. By clearly stating the purpose, the Articles support compliance with state laws, guide the operations of the corporation, and inform stakeholders about the entity's objectives.

Establishing the purpose also plays a role in defining the scope of the corporation's activities, which can be important for liability protection and tax status. A well-defined purpose in the Articles helps to clarify the corporation’s goals and ensures that all actions taken align with that stated intention.

While procedural rules and restrictions for Community Interest Corporations (CIC) may exist, they are not the primary focus of the Articles of Incorporation. Additionally, the Articles themselves do not need to be renewed annually; they are filed with the state upon the corporation's formation and do not change unless an amendment is made.