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Articles of Incorporation: Glossary Definition

Definition of Articles of Incorporation:

The Articles of Incorporation (also sometimes called the Certificate of Incorporation) is the charter document of a corporation.  This document describes the classes and series of capital stock that the corporation is authorized to issue, as well as the rights and privileges of the holders of the company’s capital stock, including voting rights, liquidation preferences, redemption, negative covenants and anti-dilution protections. The Articles of Incorporation are filed with the Secretary of State of the state of incorporation to incorporate the business.

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Today’s Question — Friday, July 30

Must I pay all of my employees?

It is not unusual for start-up companies to have limited cash resources. It is also not unusual for entrepreneurs to entice employees to the company by offering stock compensation, instead of cash, until such time as the business can afford to pay regular salaries. However, it is advisable to consult with an employment lawyer in your state of operations to determine if this is permissible under the state’s wage statutes. In most cases, the lawyer will likely advise that each employee be paid an amount equal to applicable minimum wage amounts.

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