Final answer:
A Certificate of Incorporation is the legal document issued by the state based on the company's articles of incorporation when a business is formed as a corporation. This document officially recognizes the company as a legal entity, allowing it to partake in various legal actions similar to an individual.
Step-by-step explanation:
Legal Document for Company Formation
A Certificate of Incorporation is the legal document that the state issues to a company based on the information the company provides in its articles of incorporation. When a business decides to form a corporation, it must submit these articles to the state government outlining the structure and purpose of the company. Once reviewed and approved, the state grants the Certificate of Incorporation, recognizing the company as a legal entity distinct from its owners. This document provides the corporation with many of the same rights and responsibilities as an individual, such as the ability to sue, be sued, enter into contracts, and borrow money.
Other documents like a Business License, Tax Identification Number, and Operating Agreement have different purposes. The Business License is a permit to operate legally in a particular locale; a Tax Identification Number is assigned for tax purposes; and an Operating Agreement outlines the internal operations of a company, particularly in the case of an LLC.