Business Formation Documents: What Do I Need?

Starting a business is more accessible than ever before. Yet, following the correct channels to do so remains vital, including gathering and obtaining the right business formation documents. These are essential legal instruments that are required to formally register and operate a business within a specific jurisdiction. In many ways, they serve as the foundational records that solidify a company’s structure, governance, and obligations in regard to compliance.

The types of formation documents a company requires can vary depending on different factors. Most commonly, there are differences between business structures — sole proprietorships generally require different documents from Limited Liability Companies (LLCs). The jurisdictional location of the business is also likely to affect what documents are required.

We’ve put together this article to take a closer look at business formation documents and what owners are likely to need. Importantly, it takes a global perspective, rather than being limited to specific countries or regions, ensuring entrepreneurs can make informed choices no matter where in the world they are.

Purpose of Business Formation Documents

The main function of business formation documents is to provide the official recognition that is necessary for a business to exist within a jurisdiction. Without them, a company usually isn’t registered with the appropriate authorities, and they’re unable to carry out any formal commercial activities. 

Another key role of these documents is to help delineate the internal structure of the company. It clarifies positions of owners, shareholders, and managers alike. This clarity is essential when it comes to assigning decision-making authority and establishing accountability. Owners looking into what is a series LLC are likely to be familiar with this documentation.  Furthermore, business formation documents help facilitate regulatory compliance. They ensure that all relevant requirements are met from the outset. 

There’s also an operational imperative to having formation documents. For instance, the majority of financial institutions require these documents before a company can open a business bank account. Similarly, potential investors and lenders often request these records during due diligence to assess a business’s legitimacy and structure before providing capital. The documents are essential, too, for solidifying the separation of business and personal assets. If these aren’t properly collated and filed, the limited liability benefits of an LLC could be vulnerable to legal challenges.

Common Types of Business Formation Documents

Several types of business formation documents are common across different types of LLC-structured business entities and jurisdictions. The specific names and formats may vary, but their functions are largely consistent. These include:

• Articles/certificate of incorporation – These are the primary documents filed with a government agency in order to legally create the entity. They officially set out the company’s name, its purpose, share structure, and registered agent or office.
• Articles of organization (for LLCs) – These serve a similar purpose to articles of incorporation, but are tailored to the LLC format. When considering how long does it take to get an LLC, ensuring these articles are in order helps mitigate delays.
• Operating agreement (LLC) or corporate bylaws – Operating Agreement is usually drafted, which governs the internal management of an LLC, though this isn’t mandatory in all jurisdictions. Corporate Bylaws may be created, too, which define overall rules for governance. These typically include how directors are appointed and how meetings are held.
• Shareholder agreements – Shareholder agreements are particularly vital in businesses with multiple owners. These outline each shareholder’s rights and responsibilities. They may also include provisions for conflict resolution or share transfers.
• Business licenses and permits –The types of permits and licenses will depend on a range of factors, including the industry, type of business operations, and the jurisdiction.
• Federal Employer Identification Number (EIN) – In the U.S., Employer Identification Number (EIN) is typically required for tax purposes, employee hiring, and opening corporate accounts. There are usually similar identification numbers in other jurisdictions.

Jurisdictional Differences in Formation Requirements

Depending on the jurisdiction, formation requirements are likely to differ considerably. Entrepreneurs need to be aware of both national and regional variations. 

For instance, in the U.S., there can be differing rules regarding document content, filing procedures, and fees for each state. In the U.K., forming a limited company requires registration with Companies House, alongside submission of a Memorandum and Articles of Association. They must continue adhering to the Companies Act, too.

The UAE offers several free zones with differing formation rules that are often tailored to foreign ownership, providing tax incentives. Singapore, on the other hand, requires companies to comply with regulations set out by the Accounting and Corporate Regulatory Authority (ACRA), including naming conventions and local director requirements.

It’s important for global entrepreneurs to strategize their approach, complying with local legal frameworks and making careful choices based on how formation requirements align with wider goals. Seeking assistance from consultants with experience forming companies can be invaluable, and Ascot offers global services of this nature, unlike many region-specific firms.

Steps to Prepare Your Business Formation Documents

Taking an organized approach to preparing business formation documents helps to keep progress on track.

First, companies must determine the most suitable business structure based on various factors, including their operational goals, tax strategy, and liability preferences. This also affects the type of documents required.

Next, decide on a business name. This must comply with local naming regulations. Companies should also check it is not already in use or trademarked. Once the name is confirmed, the core documents—such as Articles of Incorporation or Organization—should be drafted and submitted to the appropriate government authority.

Upon approval, companies typically register the business with local or national tax agencies. This also often involves obtaining a tax ID or employer identification number. Depending on the nature of your business, obtaining specific licenses or permits may also be necessary.

Particularly when forming complex entities or those in varying jurisdictions, it is advisable to seek contractual and regulatory professional assistance from those with experience navigating these frameworks, such as business formation consultants. 

How to Maintain and Update Your Business’s Formation Documents

Businesses evolve over time. Occasionally, it’ll be necessary to update your business’s formation documents. Some of the common triggers for this include changes in ownership, the company’s principal place of business being relocated, structural reorganizations, or the introduction of new members (for LLCs) or shareholders.

Amendments in these cases usually involve filing formal notices with the appropriate authority, alongside any supporting documentation to support the change. Sometimes, particularly when changes affect shareholding structure, internal resolutions must be passed by stakeholders.

Additionally, solid internal record-keeping practices are essential for ongoing compliance. Indeed, many jurisdictions require that certain documents and amendments be retained for a set period and be available for inspection upon request. Staying organized with documents related to obligations avoids penalties and disruptions.

FAQs

What is the difference between Articles of Incorporation and Articles of Organization?

Articles of Incorporation are typically used for forming a corporation. They typically include details such as the number of shares authorized and the names of directors. Articles of Organization are used to form an LLC and focus more on the business name, registered agent, and management structure.

Are business formation documents public records?

Certain business formation documents are publicly accessible, depending on the jurisdiction. Articles of Incorporation or Organization filed with government registries are often part of the public record. Most internal documents, such as shareholder agreements, remain private.

Do I need a consultant to file business formation documents?

External representation is not always required. Though it is often recommended, particularly for businesses with complex ownership structures or those forming in foreign jurisdictions.

Can I change my business structure later?

Yes, in many cases. However, the process typically involves filing new documents, dissolving the previous structure, and addressing any tax or regulatory obligations.

How long does it take to register a business with formation documents?

In some countries, registration may be completed within one to two business days, while in others, it could take several weeks. Delays may occur due to missing documentation, regulatory reviews, or high filing volumes.

References

Indeed. (2024, October 31). What Are Bylaws? Indeed. https://www.indeed.com/hire/c/info/what-are-bylaws 

ACRA. (2025). Choosing a Company Name. ACRA. https://www.acra.gov.sg/how-to-guides/setting-up-a-local-company/choosing-a-company-name